Don't you think the comments around share buybacks are pretty damning? The reasoning makes no sense. Either they are 1) stupid, 2) lying, and/or going to blow the cash on bad m&a.
I think the CEO took it a little too far. He dominates the earnings call. They have been very conservative in the past with their cash during the good times, now we're going into less good times. For the moment, I'll give them the benefit of the doubt. They have been talking about acquisitions for the last 2 years. They should have opportunities in the coming 2 years. we'll have to wait and see. But if their capital allocation strategy does not improve, then it could break the long thesis. I plan to contact investor relations with a list of questions. A lof of other investors have asked IR about the buybacks so I think they feel the pressure from the investors. At the least, they should buy back to compensate for the dilution by their shareholder incentive plan.
Don't you think the comments around share buybacks are pretty damning? The reasoning makes no sense. Either they are 1) stupid, 2) lying, and/or going to blow the cash on bad m&a.
I think the CEO took it a little too far. He dominates the earnings call. They have been very conservative in the past with their cash during the good times, now we're going into less good times. For the moment, I'll give them the benefit of the doubt. They have been talking about acquisitions for the last 2 years. They should have opportunities in the coming 2 years. we'll have to wait and see. But if their capital allocation strategy does not improve, then it could break the long thesis. I plan to contact investor relations with a list of questions. A lof of other investors have asked IR about the buybacks so I think they feel the pressure from the investors. At the least, they should buy back to compensate for the dilution by their shareholder incentive plan.