This is an interesting article on Buy Backs from MPL Communications. It talks about the pros and cons to share Buy Backs. This is a subject all shareholders should be interested in.
I am not sure I like stock buy backs. I would rather see a company pay special dividends instead. Buy Backs can hide the fact that outstanding shares have increased due to stock options. They can make it appear than things like EPS is increasing when it is not or not increasing as much as it appears to be increasing.
I certainly do not like it when a company borrows money to do share Buy Backs. This is as bad as borrowing money to pay dividends or distributions.
On my other blog I am today writing about Finning International Inc. (TSX-FTT, OTC-FINGF) ... continue...
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