|
Title: Debt = Value ?! Many legit companies PUMP STOCK PRICES with low interest loans Post by: bitpump on March 30, 2016, 05:02:46 PM Debt = Value ?!
Many legit companies PUMP STOCK PRICES with low interest loans They buy their own stocks ... FACT: 93% of net buying in equities this year is *buybacks* Title: Re: Debt = Value ?! Many legit companies PUMP STOCK PRICES with low interest loans Post by: Fortify on March 30, 2016, 09:59:45 PM There are many schemes like this and they almost all push the boundaries of legality. A similar concept used by multinationals is purchasing the license for usage of the brand based in a low tax country and hoard the profits offshore through a network of banks. Debt can even be used as a takeover prevention tool or poison pill but that can backfire too.
Title: Re: Debt = Value ?! Many legit companies PUMP STOCK PRICES with low interest loans Post by: bitbunnny on March 31, 2016, 10:53:01 AM There is no pure legit business any more. All big companies use criminal or half criminal methods to make profit, to survive, to lead the market or whatsoever
Title: Re: Debt = Value ?! Many legit companies PUMP STOCK PRICES with low interest loans Post by: 7788bitcoin on April 01, 2016, 02:13:58 AM There is no pure legit business any more. All big companies use criminal or half criminal methods to make profit, to survive, to lead the market or whatsoever Agree. Many of them are squeezing their brains to think of ways to cut cost and avoid taxes. It is known that some US-base international companies move their HQ to overseas, just to avoid the huge tax should they decided to bring their earnings back to US. Title: Re: Debt = Value ?! Many legit companies PUMP STOCK PRICES with low interest loans Post by: odolvlobo on April 01, 2016, 07:18:34 AM Do you have any examples of companies borrowing money to buy back stock? That make very little business sense.
Title: Re: Debt = Value ?! Many legit companies PUMP STOCK PRICES with low interest loans Post by: kryptopojken on April 01, 2016, 07:32:27 AM Debt is all is debt
Title: Re: Debt = Value ?! Many legit companies PUMP STOCK PRICES with low interest loans Post by: Fortify on April 01, 2016, 05:47:33 PM Do you have any examples of companies borrowing money to buy back stock? That make very little business sense. I think you could say Enron was among them, but they had many fraudulent enterprises running so it doesn't really count. You're right though, unless the company is flush with cash that allows it to buy back stock then it is simply reckless to borrow without a better plan than share buyback. Flipped to the extreme end, weirdly a company that owes the bank $1 billion controls the bank but a company that owes $1 million has to meet all requirements. |