Corona Virus 2019-nCoV

billvon said:
Say you are a crony of Trump. You have a bazillion shares of EGadgets.com.

You talk to the Board of Directors of EGadgets. "Hey BoD, if I get you a billion in aid, will you do a buyback?" BOD says "sure!" You talk to Jared and he mentions it to his dad.

EGadgets gets a billion. They do a buyback. Your stock value goes up and you make millions.
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I wasn't talking about aid from the government being used for a stock buy back. I think there are stipulations with this aid to prevent that, is there not?

This idea that stock buy backs is "bad" has existed long before this government aid that we are currently talking about.

The virus and unemployment is a new thing. Generally people are laid off because there isn't enough business to hire more people. In that case, if you are trying to build a viable company you use profits in one of 3 ways. Increase the value of the company via investments, pay dividends or use stock buy backs.
 
Quantum Quack said:
constantly resorting to ad hominem argument serves me well... thanks...
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You're welcome. Implying that I didn't explain stock buy back when I did is evading the issue as well. I have an MBA in International Business. I don't need you to school me on this issue.
 
Seattle said:
You're welcome. Implying that I didn't explain stock buy back when I did is evading the issue as well. I have an MBA in International Business. I don't need you to school me on this issue.
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ah so that's where yo learned the only good argument is an Ad hominem one.... ok .. I see... also you obviously have never made money from a buy back...
An MBA in international business... where do you get that online.. Gum Tree or was it Amazon?
 
Seattle said:
I agree with all of your points except one. How do you make millions off of stock buybacks?

A company has retained earnings. They either invest that back into the business if there are good investments to be had. If there are not currently good investments to be had, they buy back stock.

Both ways do exactly the same thing for stockholders. Retained earnings belongs to stock holders. Whether their stock value goes up though investing retained earning back into the company and though stock buy backs has exactly the same effect.

I see "stock buy backs" contently being used as a "bad" thing when it is clear that the person using that term doesn't understand that term (no offense to you intended of course).
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Fine, not “millions.” :rolleye:
 
Quantum Quack said:
ah so that's where yo learned the only good argument is an Ad hominem one.... ok .. I see... also you obviously have never made money from a buy back...
An MBA in international business... where do you get that online.. Gum Tree or was it Amazon?
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Thunderbird.
As I recall, you were a car mechanic, right?
 
Seattle said:
Thunderbird.
As I recall, you were a car mechanic, right?
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I was and have been a number of things, including a CEO that made a profit out of a buy back... duh!
International Business qualification... sheesh! half the hookers in my suburb use similar... lol

Either international relations or kindergarten teacher... lol lol
 
Quantum Quack said:
I was and have been a number of things, including a CEO that made a profit out of a buy back... duh!
International Business qualification... sheesh! half the hookers in my suburb use similar... lol

Either international relations or kindergarten teacher... lol lol
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Let's face it, you don't know what you are talking about, as usual.
 
Seattle said:
I wasn't talking about aid from the government being used for a stock buy back. I think there are stipulations with this aid to prevent that, is there not?

This idea that stock buy backs is "bad" has existed long before this government aid that we are currently talking about.

The virus and unemployment is a new thing. Generally people are laid off because there isn't enough business to hire more people. In that case, if you are trying to build a viable company you use profits in one of 3 ways. Increase the value of the company via investments, pay dividends or use stock buy backs.
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While we are in the middle of a pandemic, it just seems a little disgusting to think of innovative ways to profit from the situation. That’s just me.
 
wegs said:
While we are in the middle of a pandemic, it just seems a little disgusting to think of innovative ways to profit from the situation. That’s just me.
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not just you...
We had a guy here in Melbourne who tried to return about $1,400 worth of toilet paper to the supermarket and was told to ....uhm... well you know...
It's funny to think that he probably has a garage full of toilet paper he can't off load...
 
wegs said:
While we are in the middle of a pandemic, it just seems a little disgusting to think of innovative ways to profit from the situation. That’s just me.
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Is it happening? Are there any companies that have received aid that was intended to save workers jobs, and then was used for buy backs?
 
Seattle said:
Is it happening? Are there any companies that have received aid that was intended to save workers jobs, and then was used for buy backs?
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Not yet. Companies receiving Cv19 stimulus money (loan?) are not permitted to buy back stocks for the duration of the loan.

This is an interesting read. I don't see buy backs as a bad thing under normal circumstances, but not now. Not when companies are laying off their workers. Again, I'm not against capitalism, I'm against late stage capitalism. You should look it up, if you're not familiar. It's a problem.

https://www.vox.com/2020/3/21/21189471/stock-buybacks-coronavirus-bailouts-airlines-trump
 
Quantum Quack said:
not just you...
We had a guy here in Melbourne who tried to return about $1,400 worth of toilet paper to the supermarket and was told to ....uhm... well you know...
It's funny to think that he probably has a garage full of toilet paper he can't off load...
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Why did he buy so much...to price gouge others?
 
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