Comments on: JNJ and COP announce Stock buyback? So what? http://www.optionpundit.net/strategy/jnj-and-cop-announce-stock-buyback-so-what Powerful option trading strategies for consistent income. Credit spread, Iron Condor, Calendar spread, Double Diagonal, Income Spread. Thu, 20 Nov 2008 11:50:11 +0000 http://wordpress.org/?v=2.5.1 By: OptionPundit http://www.optionpundit.net/strategy/jnj-and-cop-announce-stock-buyback-so-what#comment-4407 OptionPundit Wed, 11 Jul 2007 05:39:57 +0000 http://www.optionpundit.net/strategy/jnj-and-cop-announce-stock-buyback-so-what#comment-4407 Dave, thanks for an excellent point. This is surely a case as "management" is answerable to its investors on the money beging invested. Regards, OP Dave, thanks for an excellent point.
This is surely a case as “management” is answerable to its investors on the money beging invested.

Regards, OP

]]> By: gricey http://www.optionpundit.net/strategy/jnj-and-cop-announce-stock-buyback-so-what#comment-4377 gricey Tue, 10 Jul 2007 12:21:02 +0000 http://www.optionpundit.net/strategy/jnj-and-cop-announce-stock-buyback-so-what#comment-4377 Hi OP, There was one criteria I think you missed. Companies, that are obliged to their shareholders, have to review the purchase of their own shares in this light. i.e. they have to believe that their own stocks represents a sound investment that will return profits for their shareholder. The sort of considerations they would balance include, are there any other take-over targets that may achieve similar returns, or are their investments in other companies (non-controlling ownership) that represent better value. Thus, companies buying up their own stock must believe there is value in it as a stand alone investment (the other benefits aside) and hence why it makes these stocks attractive to investors. Just my 2 cents worth! Regards, Dave. Hi OP,

There was one criteria I think you missed. Companies, that are obliged to their shareholders, have to review the purchase of their own shares in this light. i.e. they have to believe that their own stocks represents a sound investment that will return profits for their shareholder. The sort of considerations they would balance include, are there any other take-over targets that may achieve similar returns, or are their investments in other companies (non-controlling ownership) that represent better value.

Thus, companies buying up their own stock must believe there is value in it as a stand alone investment (the other benefits aside) and hence why it makes these stocks attractive to investors.

Just my 2 cents worth!

Regards, Dave.

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