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Kansas City Southern Gives Disastrous Economic Update, Pulls Guidance, Announces Stock Buyback
How does a company which reveals its business is so disastrous it not only has to withdraw revenue and volume guidance "due to uncertainty around energy-related markets, F/X impact and U.S. fuel price" and says that:
- Q2 to Date Revenue and Carload Growth Well Behind Q1 Trends
- Second Quarter Energy Segment Decline Accelerating
- Service Issues are Impacting Growth
- Key US Economic Indicators Have Deteriorated Since Late ‘14
- Challenging U.S. Rail Volume Environment in Q2
... cover it all up in hopes of avoiding a total collapse in its stock price? Simple: it announces a $500 million stock buyback program.
Because the more one's business deteriorates, the greater the buyback.
To wit, and do not the in your face "red-alert" color scheme. Golf clap for that:
It gets better:
And the punchline:
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.......empty oil rail cars sitting all over north dakota; BNSF and CP/Sooline
Announces Stock Buyback
Sure we'll pay triple, unless you had a different figure in mind.
When profits become losses, that reduced share base is going to hurt on the per share basis. At that point, they will issue more shares to dilute the loss.
Note the management and B.O.D.'s "...belief in their franchise and future growth opportunities."
Just like the FED; nevermind the debt or the grinding collapse in fundamentals, to the moon on a rainbow!
Buy high and sell low. That's how repurchase programs work. It's only there to benefit the execs.
Can't admit the truth, so the exec's are packing their golden parachute.......
Company trades 3 Xs rev, has only $38 million in cash, already has $2.10 billion in debt and is going to add 25% to that number with the buy back. Yeah that will work.
It's all finacial masterbation.
More good economic news thanks to the Obama administration's excellent leadership. One more reason why Congress should follow the lead of dope dealing Senator Mitch McConnell and support the Obama Trans Pacific Partnership. After all, with reduced tariffs, McConnell's father-in-law, the owner of a rust bucket shipping line, can smuggle in even more cocaine into Europe and the USA.
http://www.dailykos.com/story/2014/10/31/1340696/-40kg-Of-Cocaine-Found-...
My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... www.jobs-review.com
you and your sister are as full of shit as this economy. hope your taking some of that imaginable income and buying some gold and silver while prices are still low. my question is does anyone buy this bullshit anyone is selling. so enjoy that job and may god bless you while you screw people out of what money they have left 9,5000 month last joke like this made 7,2000
All you have to do is look at the Baltic Dry and railcar loadings to view the "true" health and condition of this economy. "Smellin" better raise interest rates quick. She won't be able to bullshit her way through this economy much longer.
Fate the Magnificent
"Push the Button, Max"
Max, we're number 8.
A good salesman would have them being used for oil storage.
Stock buybacks are always the answer with the Federal Reserve's cheap money.
Buybacks are tribute delivered to the NY Fed.
WAAAY to much reality this early in the morning......then I got to the buyback part..
When one is doing it, eventually all will. These corporations likely think we all will use buybacks to prop up the stock price because if all should fail, Uncle Sugar will bail us out. Free money for the elite.
The guy responsible for that slide wasn't in the mood.
"Ample capacity remains to fund growth opportunities".
LOL
I bet Buffett is happy he's got those hard assets now.
I'll bet Buffet will lend them the money for the 'buy back' and then make a call on 'sitpulations of preformance' and get the whole 'lit and cabootal' for nothing.
Our prospects suck, so we are going to piss our money away on stock buybacks. Good plan.
Oh, no...not their money. Just pile on more corporate debt, and when it pops the "taxpayer" will likely pick up the tab. The execs will have parachuted out well before then.
This is my definition of FRAUD.
Modern investing is premised on fraud. Its all about getting someone to pay more for something than you paid after adding no value to it whatsoever.
How about a fake Rolex? I can sell it to you for two hundred and history has shown that someone else will pay three. Its only really fraud if the buyer doesn't know its a fraud, but once he finds out, he ain't telling anyone. Not if he wants to recoup or profit on its sale.
Easy peasy
"Lack of crews in Mexico due to unexpected attrition"? What gives with that?
Cartel hits are up along the border. Some of our employees got in the way.
So... "hi, we are losing value rapidly and also I'll be happy to take our shares off your hands"?
Trickle down economics, liquidity crisis, fire sale prices, profit...
Yeah, but lower oil prices are good for the consumer. With the savings he'll go out and buy some more big screens and sh...
/sarc
Fucking stock buyback when the company is falling to shit. Unbelievable. Way to preserve capital you dumb shits.
No one has ever accused management of being smart.
I accuse management of being smart all the time, just not necessarily good at ensuring the business stays a going concern due to strong financial fundamentals. Why do you need capital in the land of bailouts?
At least they are clever, buybacks maintain the value of their options.
The buyback money would be better spent shorting their own stock.
The announcement covers what the company intends to do.
What the execs tell their brothers-in-law to do may be completely different.
reality is coming back and she will hurt you
forgot to add: BONUS TIME BITCHEZ BWA HA HA HA!!
Sooo, if this is "real", what is the Onion publishing?
My favorite line is in the stock buyback section:
"To be executed opportunisticly"
They left out the "for the executives pay packages" part.
Whatever happened to the concept of legal fiduciary by the Board of Directors to protect the stockholders? Just another barbarous relic?
Whatever happened to the concept of elected representatives, etc., adhering to an oath to preserve, protect and defend the Constitution? Apparently said document is just another barbarous relic.
Sorry, I missed your comment when I said the same below.
Stock buy-back is a shorter way of saying "short-term personal wealth sustainability strategy for the executive team."
I believe that was what they referred to as "executed oportunistically."
WHEN ALL ELSE FAILS, BORROW AND BUYBACK STOCK.
THE CHARADE MUST CONTINUE. NO DISSENT WILL BE TOLERATED.
next footstep....Will have Goldman explore strategic options!
Hey professor fate, I thought it was "
plunk the magic twanger, froggy".
"To be executed opportunistically". Wow - got to love that statement regarding stock buy backs!
We need a couple of railroad derailments to fix this -- no wait...
Slowly but surely companies are realizing that the global credit bubble is bursting. This kind of guidance will be norm, not the exception is a few months.
http://www.globaldeflationnews.com/anatomy-of-a-bubble-how-the-federal-r...
I HATE this fucking city. Kansas Shitty!!