Activist Shareholder

Tyler Durden's picture

The Great Buyback Surge Is Over: Corporations Are Once Again Net Sellers Of Shares





By now most are aware that the primary reason there was EPS growth last year was the relentless buying back of their own stock by corporate treasurers, accounting for 75% of the increase in S&P500 earnings per share even as revenues stagnated for the second year in a row and actual earnings growth was comatose at best. At $500 billion in net stock buybacks in 2013, this was an immense amount of bidding power, equal to half of the Fed's entire annual liquidity injection. And while EPS was artificially boosted by an allocation of capital that most would say is the least efficient in terms of future growth (remember when companies spent on capital expenditures to fund long-term growth, not satisfy activist shareholders?) the only good thing that could be said about the second highest annual corporate buyback in history was that companies still saw their stocks as cheap: after all, not even the most aggressive of CFOs would greenlight a massive buyback campaign if they expected their stock to plunge. That is no longer the case.

 
Tyler Durden's picture

Frontrunning: January 7





  • Yellen’s Record-Low Senate Support Reflects Fed’s Politicization (BBG)
  • Euro-Zone Inflation Rate Falls in December, even further below ECB's target (WSJ)
  • Zambia politician charged for calling president a potato (AFP)
  • Blame gold: India Savings Deposit Scam Collapse Leaves Thousands Penniless (BBG)
  • Hedge Funds Raise Gold Wagers as Yamada Sees $1,000 (BBG)
  • George Osborne limits cuts options with pensions promise (FT)
  • Vietnam Raises Foreign Bank Ownership Caps to Aid System (BBG)
  • But they said buy a year ago... Goldman to JPMorgan Say Sell Emerging Markets After Slide (BBG)
  • SAC Trial Seen by Probe Convict as Latest Abusive Tactic (BBG)
 
Tyler Durden's picture

Frontrunning: December 26





  • Late Surge in Web Buying Blindsides UPS, Retailers, Some Christmas Packages Aren't Delivered (WSJ)
  • Yen Slides as Turkish Stocks Drop, U.S. Futures Rise (BBG)
  • Turkish lira drops to record low against dollar, as Turkey’s Erdogan replaces 10 ministers (FT)
  • Egypt designates Muslim Brotherhood as terrorist group (Reuters)
  • Thai elections in doubt after political violence (AFP)
  • Batista Cedes Oil Unit Control in $5.8 Billion Debt Deal (BBG)
  • China celebrates Mao's birthday, but events scaled back (Reuters)
  • First-class stamps to cost 49 cents as of Jan. 26 (AP)
  • Obamacare Hits Snag in States as U.S. Site Finds Footing (BBG)
  • NSA Struggles to Make Sense of Flood of Surveillance Data (WSJ)
 
Tyler Durden's picture

Frontrunning: October 8





  • Hilsenrath: Tense Negotiations Inside the Fed Produced Muddled Signals to Markets (WSJ)
  • Biggest US Foreign Creditors Show Concern on Default Risk (BBG)
  • Shutdown Costs at $1.6 Billion With $160 Million Each Day (BBG)
  • What default? Republicans downplay impact of U.S. debt limit (Reuters)
  • Top Bankers Warn on U.S. Debt Proposal (WSJ)
  • India to stick with austerity despite looming election (Reuters)
  • Japan's Current-Account Surplus Plunges (WSJ)
  • Amazon Wins Ruling for $600 Million CIA Cloud Contract (BBG)
  • German Factory Orders Unexpectedly Fall on Weak Recovery (BBG)
  • Britain's Higgs, Belgium's Englert win 2013 physics Nobel prize (Reuters)
  • Supreme Owner Made a Billionaire Feeding U.S. War Machine (BBG)
 
Tyler Durden's picture

Frontrunning: July 18





  • MSM always "ahead" of the curve: Fed’s Messages Raise Volatility in Threat to Profits (BBG)
  • Bernanke Plays Down Link Between Jobless Rate, Fed Moves (WSJ)
  • Draghi to Carney Face Test Backing Guidance on Rates (BBG)
  • House Republicans Vote to Delay Obamcare Mandates (Reuters)
  • China media accuses Japan PM of dangerous politics (Reuters)
  • China will replace America as the leading superpower, global attitudes survey finds (SCMP)
  • Nonqualified mortgages make up as much as $1.5 trillion of the $10 trillion home-loan market (BBG)
  • Dell $24.4 Billion Buyout Plan Is a Nail-Biter as Vote Looms (BBG)
  • Republicans could see more bruising Senate primaries (Reuters)
  • GM delays Chevy Cruze debut by a year (Reuters)
  • Peltz needs support for PepsiCo restructuring dealsa (FT)
  • Sweaty Wall Streeters Skip Booze for Spin-Class Meetings (BBG)
 
Tyler Durden's picture

Frontrunning: March 14





  • Dimon’s ‘Harpooned’ Whale Resurfaces With Senate Findings (BBG)
  • Greece and lenders fall out over firings (FT) - as predicted 48 hours ago
  • Dallas Fed Cap Seen Shrinking U.S. Banking Units by Half (BBG) - which is why it will never happen
  • Xi elected Chinese president (Xinhua)
  • Russia Bond Auction Bombs as ING Awaits Central Bank Clarity (BBG)
  • U.S. and U.K. in Tussle Over Libor-manipulating Trader (WSJ)
  • Chinese firm puts millions into U.S. natural gas stations (Reuters)
  • In Rare Move, Apple Goes on the Defensive Against Samsung (WSJ)
  • Berlin Airport Fiasco Shows Chinks in German Engineering Armor (BBG)
  • Ex-PIMCO executive sues firm, says was fired for reporting misdeeds (Reuters)
  • Bank of Italy Tells Banks in the Red Not to Pay Bonuses, Dividends (Reuters)
 
Tyler Durden's picture

Guest Post: Gun Rights - Are There Any Peaceful Solutions Left?





Throughout history, citizen disarmament generally leads to one of two inevitable outcomes:  Government tyranny and genocide, or, revolution and civil war.  Anti-gun statists would, of course, argue that countries like the UK and Australia have not suffered such a result.  My response would be – just give them time.   You may believe that gun control efforts are part and parcel of a totalitarian agenda (as they usually are), or, you may believe that gun registration and confiscation are a natural extension of the government’s concern for our “safety and well-being”.  Either way, the temptation of power that comes after a populace is made defenseless is almost always too great for any political entity to dismiss.  One way or another, for one reason or another, they WILL take advantage of the fact that the people have no leverage to determine their own cultural future beyond a twisted system of law and governance which is, in the end, easily corrupted. The unawake and the unaware among us will also argue that revolution or extreme dissent against the establishment is not practical or necessary, because the government “is made of regular people like us, who can be elected or removed at any time”.  This is the way a Republic is supposed to function, yes.  However, the system we have today has strayed far from the methods of a Free Republic and towards the machinations of a single party system.  Our government does NOT represent the common American anymore.  It has become a centralized and Sovietized monstrosity.  A seething hydra with two poisonous heads; one Democrat in name, one Republican in name.  Both heads feed the same bottomless stomach; the predatory and cannibalistic pit of socialized oligarchy.

 
Tyler Durden's picture

Be Careful What You Hope For - Buy-Back Mountain





We noted yesterday the apparent perfect (ill)-market-timing of increases in corporate buybacks and nowhere is this more evident than across Europe. The following chart might just make all those activist shareholder mom-and-pops, demanding CEOs 'use' their cash hordes, think twice... it appears the CEOs really don't have better crystal balls than the rest of us...

 
Tyler Durden's picture

Frontrunning: February 15





  • G20 struggles over forex, at odds over debts (Reuters)
  • Alwaleed Sells Airbus A380 to Invest in Middle East Firms (BBG)
  • GOP Stalls Vote on Pick for Pentagon (WSJ)
  • ECB officials rebuff currency targeting as G20 meets (Reuters)
  • Not good for the reflation effort: Muto leads as Japan PM close to choosing nominee for Bank of Japan chief (Reuters)
  • M&A Surges as Confidence Spurs Deals in Computers to Consumer (BBG)
  • JPMorgan’s head of equity prop trading Gulati to launch own fund (FT)
  • Tiffany & Co. sues Costco over engagement rings labeled ‘Tiffany' (WaPo)
  • JPMorgan Said to Fire Traders, Realign Pay Amid Slump (BBG)
  • Broker draws Tullett into Libor scandal  (FT)
  • Airbus drops Lithium-Ion batteries for A350 (Reuters)
 
Tyler Durden's picture

Frontrunning: February 13





  • Obama Paints Wider Role for Government in Middle Class Revival (BBG)
  • Obama to Seek a New Trade Deal With EU (WSJ)... or this is strawman why 2016 GDP will be higher
  • Mobile phone sales fall for the first time since 2009 (Telegraph)
  • Sequester Looms, No Deal in Sight (WSJ)
  • Neither US party swallows a compromise (FT)
  • Embattled Economies Cling to Euro (WSJ)
  • For China, Spending Is Harder Than It Looks (WSJ)
  • Bank of England's Sir Mervyn King says recovery in sight (BBC) - just a little more inflation first
  • G7 fails to defuse currency tensions (FT)
  • Japanese Leader Urges Firms to Boost Wages (WSJ) - so does the US one
  • Fed Bank Chiefs Back Money-Fund Overhaul (WSJ), or force everyone out of MMFs and into stocks
 
Tyler Durden's picture

Guest Post: Where Does The Hatred Of Constitutionalism Come From?





The Constitution of the United States is an undeniably powerful document.  So powerful in fact, that it took establishment elitists with aspirations of globalized governance over a century to diminish the American people’s connection to it.  It’s been a long time coming, but in the new millennium, there is now indeed a subsection of the masses that not only have no relationship to our founding roots, they actually despise those of us who do! There are a number of reasons for this dangerous development in our culture...

 
Tyler Durden's picture

Frontrunning: May 16





  • Facebook's selling shareholders can't wait to get out of company, increase offering by 25% (Bloomberg)
  • Boehner Draws Line in Sand on Debt (WSJ)
  • Romney Attacks Obama Over Recovery Citing U.S. Debt Load (Bloomberg)
  • BHP chairman says commodity markets to cool further (Reuters)
  • Merkel’s First Hollande Meeting Yields Growth Signal for Greece (Bloomberg)
  • Greek President Told Banks Anxious as Deposits Pulled (Bloomberg)
  • EU to push for binding investor pay votes (FT)
  • Martin Wolf: Era of a diminished superpower (FT)
  • China’s Hong Kong Home-Buying Influx Wanes, Midland Says (Bloomberg)
  • U.N. and Iran agree to keep talking on nuclear  (Reuters)
  • US nears deal to reopen Afghan supply route (FT)
 
Tyler Durden's picture

Frontrunning: May 4





  • Japan has 54 nuclear reactors, but as of Saturday, not one of them will be in operation (Guardian)
  • US Readies Proposal to Clamp Down on Fracking (Reuters)
  • California pension fund (CALSTRS) sues Wal-Mart, alleges bribery (Reuters)
  • New Ripples for Gupta Case: Goldman Share Price, Volume Began Climbing Even Before Rajaratnam Trades (WSJ)
  • China says blind dissident can apply to study abroad (Reuters)
  • China paper calls Chen a U.S. pawn; envoy is a "troublemaker" (Reuters)
  • Samsung’s New Galaxy S Phone Raises Heat on Apple Iphone (Bloomberg)
  • Draghi predicts 2012 eurozone recovery  (FT)
  • Tumbling Home Ownership Marks a Return to Normal (Bloomberg)
  • Zuckerberg Facebook IPO to Make Him Richer Than Ballmer (Bloomberg)
  • SEC probes Chesapeake and its chief (FT)
 
Tyler Durden's picture

Frontrunning: March 14





  • Euro zone formally approves 2nd Greek bailout: statement (Reuters)
  • In a First, Europeans Act to Suspend Aid to Hungary Unless It Cuts Deficit (NYT)
  • UK Chancellor Looks at 100-Year Gilt (FT) - What? No Consols?
  • Hilsenrath: Fed's Outlook a Tad Sunnier - (WSJ)
  • Banks Shored Up By Stress Test Success (FT)
  • U.S. dangles secret data for Russia missile shield approval (Reuters)
  • Wen Warns of Second China Cultural Revolution Without Reform (Bloomberg)
  • Wen Says Yuan May Be Near Equilibrium as Gains Stall (Bloomberg)
  • Merkel Says Europe Is ‘Good Way’ Up Mountain, Not Over It (Bloomberg)
 
Syndicate content
Do NOT follow this link or you will be banned from the site!