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Peak Corporate Earnings (?)
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raspberry-blower



Joined: 14 Mar 2009
Posts: 1649

PostPosted: Sun Apr 01, 2018 9:50 am    Post subject: Reply with quote

With all the problems surrounding Faceache a ditch Netflix campaign and now Trump going after Jeff Bezo's Tax-Dodgers-R-Us here is a timely article putting the social media stocks into perspective:

Capital & Conflict: De-FAANGed and disappearing

Quote:
Facebook, DODGY TAX AVOIDERS, Apple, Netflix and Google’s Alphabet aren’t the only ones caught up.

NVIDIA plunged after driverless car testing proved a debacle and was stopped.

Tesla’s stocks and bonds are tumbling. There’s even talk of a default. Tesla’s bonds are priced as riskier than Ukraine’s, yielding over 7.5%. John Thompson from Vilas Capital Management reckons Elon Musk needs to “pull a rabbit out of his hat” or the company could be bankrupt within four months


Tesla is one to keep an eye for in the companies going into admin thread
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AutomaticEarth



Joined: 08 Nov 2010
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PostPosted: Wed Apr 11, 2018 1:07 pm    Post subject: Reply with quote

Shop Direct not doing very well:

http://www.bbc.co.uk/news/business-43727118
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raspberry-blower



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PostPosted: Wed Nov 28, 2018 9:56 am    Post subject: Reply with quote

Another company that squandered billions on share buybacks - GM

Wolf Richter: After wasting $14 billion on buybacks, GM prepares for carmageddon, shift to EVs

Wolf Richter wrote:
GM “will double” resources allocated to its electric and autonomous vehicle programs over the next two years, it said. This is a massive shift that other automakers are also undertaking, and plowing enormous resources into. EVs are happening on a commercial basis.

But saving money is going to cost a ton: $3.0 billion to $3.8 billion, GM said. This includes “up to $1.8 billion” asset write-downs and pension charges; and “up to $2.0 billion in employee-related and other cash-based expenses.”

This money has to be borrowed, obviously: It “expects to fund the restructuring costs through a new credit facility,” GM said.

The money has to be borrowed because GM blew, wasted, and annihilated $13.9 billion in cash on share buybacks over the past four years


GM has put a millstone around its neck through bad management - its planned switch to EV should have been funded by a fraction of what it actually spent on share buybacks
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kenneal - lagger
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PostPosted: Wed Nov 28, 2018 12:49 pm    Post subject: Reply with quote

I heard that share buy-backs benefit the executives of the firm who hold shares in the firm. Corruption? Surely not!
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vtsnowedin



Joined: 07 Jan 2011
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Location: New England ,Chelsea Vermont

PostPosted: Wed Nov 28, 2018 5:49 pm    Post subject: Reply with quote

kenneal - lagger wrote:
I heard that share buy-backs benefit the executives of the firm who hold shares in the firm. Corruption? Surely not!
I'm not a tax attorney or accountant but my understanding is that if an executive (or any other stock holder for that matter)lets the company buy back his shares he has to pay capital gains tax on the transaction.
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kenneal - lagger
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PostPosted: Wed Nov 28, 2018 6:14 pm    Post subject: Reply with quote

I didn't think that executive shares were the ones which were involved in the buybacks. They buy them back as they become available on the stock exchange so the executives can hang onto theirs to reap the rewards at a later date.
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BritDownUnder



Joined: 21 Sep 2011
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Location: Hunter Valley, NSW, Australia

PostPosted: Wed Nov 28, 2018 8:13 pm    Post subject: Reply with quote

I think in the short term corporate buybacks boost the share price which is a big metric by which corporate remuneration (or corporate looting if you prefer) of company directors is determined. Such a move is generally sold as a 'benefit' to remaining shareholders as there is the same money given to a smaller number of shares as dividends. However...

In the longer term they tend to increase corporate debt and hence corporate interest repayments which eventually make companies bankrupt.

So the canny director may wish to have a corporate buyback, watch the share price rise in the short term, get his pay rise and then keep an eye on the corporate debt repayments and before they get too high take his payoff and pension and 'spend more time with his family'. Then the company usually goes bust.
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raspberry-blower



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PostPosted: Sun Dec 02, 2018 1:43 pm    Post subject: Reply with quote

BritDownUnder wrote:
I think in the short term corporate buybacks boost the share price which is a big metric by which corporate remuneration (or corporate looting if you prefer) of company directors is determined. Such a move is generally sold as a 'benefit' to remaining shareholders as there is the same money given to a smaller number of shares as dividends. However...

In the longer term they tend to increase corporate debt and hence corporate interest repayments which eventually make companies bankrupt.

So the canny director may wish to have a corporate buyback, watch the share price rise in the short term, get his pay rise and then keep an eye on the corporate debt repayments and before they get too high take his payoff and pension and 'spend more time with his family'. Then the company usually goes bust.


Yep
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raspberry-blower



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PostPosted: Sun Dec 02, 2018 1:53 pm    Post subject: Reply with quote

UK construction industry is in a bit of a mess.
In spite of the Help-to-Buy scheme that is, to all intents and purposes, a big sop to the big house builders, some are in a somewhat precarious financial position. First Carillion went bust, now this:

Kier launches a £264 EMERGENCY rights issue

Another company saddled with too much debt
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raspberry-blower



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PostPosted: Sat Dec 08, 2018 10:01 pm    Post subject: Reply with quote

TRNN: Stock Buybacks: "Free Market" Ideology Licence to Loot
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