Expect more and more as the Fed has just given the green light until 2013, low yielding cash on the balance sheet with nowhere to go in the regular business will be used to buy back stock - that will boost earnings per share growth - some snobs don't like that kind of growth, but I am happy to own a greater share of slow growing profits without ponying up more dough.
August 17 (Bloomberg) U.S. companies are authorizing share repurchase plans at a rate that may make 2011 the third-biggest year for buybacks since at least 1985, Rob Leiphart, an analyst at Westport, Connecticut-based research firm Birinyi Associates Inc., wrote in a note Aug. 11. There were $36 billion in repurchases approved last month, bringing the total this year to $324 billion through July 31. If that rate holds up, 2011 would end with $554 billion, he projected. Only 2006 and 2007 had more, with $655 billion and $863 billion, respectively, Birinyi data show.
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