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Back By Popular Demand: Presenting The Blow-Off Top In Stock Buybacks
Yesterday we showed the absolutely ridiculous move that is taking place in corporate buyback announcements. And since the blackout period for buybacks is officially over, and announcements can now become executions courtesy of Wall Street's VWAP algos, here again, by popular demand, is the chart showing the record blow-off top in debt-funded stock buybacks which together with central bank buying (such as the SNB) should be enough to support the market even as outflows from equity funds have never been higher.
The biggest culprits:
The industry breakdown confirms what we have said before: "when the same management teams that sell record amounts of their own company stock to the companies they control - companies which are now buying back record amounts of stock, this is not only the worst possible conflict of interest, it means, for lack of a better word, that the Nasdaq, bubble or not, has become the biggest circle jerk in history!"
And putting it all in context:
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Maintaining faith getting more expensive.
You ain't kidding. About 3/4 of my put exposure is Jan '17, so have time. But theta and moving further out-of-the-money not giving me any warm fuzzies.
We have successfully discounted all future earnings (if there even is such a thing) to net present value. Clearly, corporations have no belief that there will be ANY future growth. It's the old "today's as good as it gets".
They may be right.
Not only are they using their own cash for buybacks, many are borrowing billions of dollars for buybacks. What banks or lenders are stupid enough to lend the money, especially to tech and biotech companies whose assets consist mostly of intangible assets and goodwill?
Don't worry about the banks, you'll be bailing them out
Fuller retard.
Pile in, pile on, pile up.
I got a $10k signing bonus and a free apartment in San Jose during the dot-com bubble. Now I'm getting stock options and free money from my etrade-baby account! BUY MOAR STOCKS! TO THE MOON! Free Obama/Yellen $$ FTW!
buyback, drive stock price up, exercise Exec. Comp plan.....buy Maserati......repeat.
As the underlying currency goes to zero, my equity "valuations" will go to infinity!!!
"Winning"!!!
/s
It shouldn't be a sarc. When money in a Bank is in danger of being confiscated, currencies are being overprinted, Bonds are about to implode and Gold is manipulated, there's no place else to go.
Corporations NEED to leverage all the way to the tip of the hilt and use ALL the money to buyback ALL the shares in the market.
Go Go Go...!!
I love fireworks.
can you say PONZI? ha.
rape that bitch called a corporation, issue options and sell baby sell.
this is just the banksters consolidating everything
the threat, the promise - never was socialism.
ALWAYS was - Monopolization. by banksters and their printing presses.
W Va coalmine lifestyles for us all! w00t!
P < P + I
From Barron's this weekend: "With about 90% of the S&P 500 reporting first quarter earnings, EPS growth is 0.1%, which is better than the expected negative 4.7%."
That next GDP print is gonna be a doozy
It could appear as a blow-off top but the main expectation is that a new high will overthrow the upper trend line of an ending diagonal dating back to 2013.
http://www.globaldeflationnews.com/dow-jones-industrial-averageelliott-w...
Do anything except give people a raise.
Own your companies stock. Thats your raise. Now suck it.
the biggest circle jerk in history!
I have to say I agree.
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Stockmarkets don't become larger or smaller because moneys flowing into or out of them. There is no money in the stock market, not one penny. It's a pass-through mechanism where I buy stock from somebody and they have my money or they buy stock from me and I have their money.
Anyone claiming there's money on the sidelines waiting to push up asset prices, can be completely ignored.