No. of Recommendations: 19
Since your value estimate is around 460, I guess you’re not too thrilled by the recent $4 billion buybacks at around 488.
Seems like most everyone else is all excited about the buybacks. Especially the news media.
No, my value estimate isn't $460ish per B---that's my estimate of a likely *price* based on historically typical multiples. As we all know, price and value aren't the same : )
As for buybacks, they rarely get me too excited. What's happening on trend in manufacturing/sales/retail matters more. This quarter the buybacks appear to have faded out around 1.45 times known book, similar to what happened in the past. I believe essentially all prior buybacks above roughly that multiple were directly from shareholders. We're at 1.55 times Friday's known book, and 1.50 times today's known book. A little above average, but nothing worrisome.
Jim
