Subject: Re: SIRI
Texirish:
Buybacks are nothing more than investing a company's cash in the future prospects of the company.

Building a new factory paid for with cash is nothing more than investing a company's cash in the future prospects of the company. It doesn't raise or lower the company's equity. It doesn't raise or lower the company's intrinsic value. But it does change the future.

Buybacks are nothing more than investing a company's cash in the future prospects of the company. Except they also lower the company's equity and the company's intrinsic value. So it isn't quite "nothing more" than future prospects it is a change to the total amount invested in the company.

But you know what else lowers the equity and intrinsic value of the company? Paying a dividend.

He's just stating the obvious.

Yeah. Me too.

R: