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

Bitcoin: The Sexiest Non-Solution Of All Time?





If Americans in particular want to pursue any solution to the threat of globalism or dollar collapse, they are going to have to start with themselves, and the community around them. Online trade is the last thing they should be worried about. Only when neighborhoods, towns, and counties become producers and self suppliers will they be safe from financial instability. Only when those same communities band together for mutual aid and self defense will they be safe from tyrannical political entities. Bitcoin accomplishes nothing in either of these categories, making it possibly the most popular non-solution for liberty to date. Bitcoin is consistently touted as a superior option to precious metals as a way to decouple from central bank fiat. Under examination, though, it appears to me that bitcoin is instead a deliberate distraction away from gold and silver, and other tangible solutions; in other words, we believe it to be a form of controlled opposition.

 


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

$500 Billion In 2013 Corporate Buybacks: Half Of QE





In 2013, corporations injected roughly half of the total POMO cash used by the Fed to push the S&P straight-line higher.

 


Tyler Durden's picture

Frontrunning: January 6





  •  'Life-threatening' cold bites Midwest, heads east (Reuters)
  • Gold Analysts Get Most Bullish in a Year After Rout (BBG)
  • Asian Stocks Fall Most in Three Weeks on China Services (BBG)
  • Angela Merkel in skiing accident, cancels visits (Reuters)
  • High-Speed Traders Form Trade Group to Press Case (WSJ)
  • Toyota and Honda post record China sales (FT)
  • China Shadow Banking Risks Exposed by Local Debt Audit (BBG)
  • J.P. Morgan to Pay Over $2 Billion to U.S. in Penalties in Madoff Case (WSJ)
  • Corruption trial of Trenton, N.J., mayor starts Monday (Reuters)
  • Car Makers at Consumer Electronics Show Tout Ways to Plug Autos Into the Web (WSJ)
 


Tyler Durden's picture

Guest Post: Violence In The Face Of Tyranny Is Often Necessary





The word “violence” comes with numerous negative connotations. We believe this is due to the fact that in most cases violence is used by the worst of men to get what they want from the weak. Meeting violence with violence, though, is often the only way to stop such abuses from continuing. We tend to discuss measures of non-participation (not non-aggression) because all resistance requires self-sustainability. Americans cannot fight the criminal establishment if they rely on the criminal establishment. Independence is more about providing one's own necessities than it is about pulling a trigger.

 


Tyler Durden's picture

Frontrunning: December 31





  • Firms to Face new Rules Over Pay, Taxes (WSJ)
  • US to test commercial drones at six sites (CNN)
  • China’s Local Debt Swells to 17.9 Trillion Yuan in Audit (BBG) - which is about 2 trillion less than where it actually is (Reuters)
  • Fears after key China debt level soars 70% (FT) and in reality the debt level is saoring far more
  • Pot Shops in Denver Open Door to $578 Million in Sales (BBG)
  • China Says It Will Shun Abe After Shrine Visit (WSJ)
  • De Blasio Taking Office Citing Wealth Gap as Crime Falls (BBG)
  • China Approves $353 Million of Share Sales as IPOs Resume (BBG)
  • Obama Seeks Way to Right His Ship (WSJ)
  • Netflix Tests Subscription Fees Based on Number of Account Users (BBG)
  • Three big macro questions for 2014  (FT)
 


Tyler Durden's picture

Frontrunning: December 30





  • Americans on Wrong Side of Income Gap Run Out of Means to Cope (BBG)
  • Michael Schumacher battles for life after ski fall (Reuters)
  • Professors for hire: Academics Who Defend Wall St. Reap Reward (NYT)
  • Chinese police kill eight in Xinjiang 'terrorist attack' (Reuters)
  • How to Prevent a War Between China and Japan (BBG)
  • Unemployment Benefits Lapse Severs Lifeline for Longtime Jobless (BBG)
  • Japan's homeless recruited for murky Fukushima clean-up (Reuters)
  • China Local-Government Debt Surges to $3 Trillion (WSJ)
  • How unexpected: Britons less inclined to pay down mortgage debt (Reuters)
 


Tyler Durden's picture

Frontrunning: December 27





  • Millions of Tons of Metals Stashed in Shadow Warehouses (WSJ)
  • Moguls Rent South Dakota Addresses to Dodge Taxes Forever  (BBG)
  • Fastest Japan Inflation Since ’08 Stokes Wage Pressure (BBG)
  • Thai crisis deepens as army chief hints at intervention (Reuters)
  • Anti-Assad Lebanese ex-minister killed in Beirut bomb (Reuters)
  • Foreigners Unload Turkey Bonds as Probe Tarnishes Erdogan Growth  (BBG)
  • Small ISS Change Shakes Up Boards: Tweak to Influential Shareholder Adviser's Recommendations Has Directors Rethinking Proposals (WSJ)
  • Japan’s Nishimura Calls for Quick Corporate Tax Cut to Under 30% (BBG)
  • Japan's Abe bets U.S. alliance, ratings can weather shrine visit (Reuters)
 


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

Why The US Capex Drought Will Continue: Archer Daniels' CEO Explains





Now that the CapEx drought has become a mainstream topic, it bears reminding that this phenomenon will continue indefinitely, and certainly as long as CapEx hurdle rates are far greater than issuing a low-yielding bond and using the proceeds to reward shareholders: indeed, this shareholders friendly topic has been perhaps the dominant theme of 2013 when activist investors stormed to the forefront once again, most prominently in the face of Carl Icahn, and have managed to force even lower revenue growth prospects by levering companies with debt loads that are now greater than during the prior credit bubble peak. Naturally, one after another bank has come out once again, as they did, and is predicting that the great deferred CapEx renaissance is upon us... any day now. Unfortunately, it isn't. And just to confirm this, here is Archer Daniels Midland summarizing the company's plans for its 2014 free cash flows. In short: they don't involve any US growth CapEx spending at all.

 


Tyler Durden's picture

Frontrunning: December 12





  • J.P. Morgan to Pay Over $1 Billion to Settle U.S. Criminal Probe Related to Madoff (WSJ)
  • Ford board aims to pin down CEO Mulally's plans (Reuters)
  • Raising Minimum Wage Is a Bad Way to Help People (BBG)
  • Japan Lawmakers Demand Speedy Pension Reform (WSJ)
  • EU reaches landmark deal on failed banks (FT)
  • In which Hilsenrath repeats what we said in August: Fed Moves Toward New Tool for Setting Rates (WSJ)
  • Senators Vow to Add to Iran Economic Sanctions in 2014 (BBG)
  • Centerbridge in $3.3bn LightSquared bid (FT)
  • Banks, Agencies Draw Battle Lines Over 'Volcker Rule' (WSJ)
 


Tyler Durden's picture

Frontrunning: December 11





  • Wall Street Exhales as Volcker Rule Seen Sparing Market-Making (Bloomberg)
  • GM to End Manufacturing Down Under, Citing Costs (WSJ)
  • U.S. budget deal could usher in new era of cooperation (Reuters)
  • Ukraine Police Back Off After Failing to Stop Protest (WSJ)
  • First Walmart, now Costco misses (AP)
  • Dan Fuss Joins Bill Gross Shunning Long-Term Debt Before Taper (BBG)
  • China New Yuan Loans Higher Than Expected (WSJ)
  • China bitcoin arbitrage ends as traders work around capital controls (Reuters)
  • Blackstone’s Hilton Joins Ranks of Biggest Deal Paydays (BBG)
 


Tyler Durden's picture

Frontrunning: December 10





  • U.S. set to adopt Volcker rule to curb bank trading gambles (Reuters) After vote, lawsuits likely next hurdle for Volcker rule (Reuters)
  • U.S. Congress budget talks could produce Tuesday deal, aides say (Reuters)
  • Wealthy Go Frugal This Holiday Amid Uneven U.S. Recovery (BBG)
  • Tearful Thai PM urges protesters to take part in election (Reuters)
  • Fed’s Bullard Sees Higher QE Taper Odds as Labor Market Improves (BBG)
  • Coeure Says ECB Would Offer More LTROs Only When Banks Can Lend (BBG)
  • Inside China's Super-Sterile Chicken Farms (WSJ)
  • Mandela Service Rivals JFK’s as Leaders Meet in South Africa (BBG)
  • China data defy slowdown forecasts (FT), and of course the word is "data"
  • Cold, ice grip U.S. as more snow to blanket East (Reuters)
 


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