What do you think?
5 replies (most recent on top)
This is to meet expected earnings by manipulating the outstanding shares in the stock market. Buy back reduces the total number is shares and Cisco will be meet the Earnings per share.
Invest those dollars in training and retaining or hiring good talent. Focus on engineering and next generation products.
when cisco does a buyback of its own shares,
- the ELT is "given" some of those shares
- the share price goes up
- ELT becomes even richer
- us peasant emps are LRed
- cisco does another buyback. go back to 1)
To purchase Splunk with some of it in Stock
And buybacks reduce the dilution that comes from giving millions of shares to the useless leadership team.
It reduces outstanding shares and the stock goes up. Momentum investors and growth algorithms see the move and think the train is leaving the station.. choo! choo! gotta get on! The FOMO cycle continues for a few days and gooses the stock so those in the know can dump out. It's the silicon valley shuffle.