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comment by kleinbl00
kleinbl00  ·  3009 days ago  ·  link  ·    ·  parent  ·  post: Unilever in talks to buy Jessica Alba's Honest company for $1bn

Cash is stupid cheap right now, which encourages large firms to take low-cost loans to buy back stock or purchase competitors.

If you have a choice between losing 1% from having your money in the bank or, you know, buying up the guys that are constantly trying to undercut your prices, monopoly all the way.





ButterflyEffect  ·  3009 days ago  ·  link  ·  

A lot of what I've been reading makes it soundike stock buybacks are financial hand waving to make a companies earnings per share increase? hey investors, look how great we're doing. Is that accurate?

kleinbl00  ·  3009 days ago  ·  link  ·  

Well, you diminish the number of shares. That changes all sorts of equations.