Billions flushed down the toilet. They could have kept every employee let go with that money and also could have invested in technology. Employees don’t even realize how this one extremely STUPID repurchase program sunk the ship. I wish one of the corporate trolls on this site could please explain this, oh wait a minute- maybe they were some of the 7% let go this week.
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The privatization thesis is BS. How can shareholder value been increase when the cost of the repurchase program is greater than the market capitalization of the company. You have to be a complete mo–n to buy into that. Plus, BBB borrowed money to execute the buybacks. Dumb and dumber.
IBM has lost 20% of its market cap since 2015
Many have speculated that the 1 billion in cash we have will be used to repurchase all shares to privatize the company again. Saves them the most in the long term and allows the company itself to be the number one priority and not the shareholders!
Execs will say the stock is undervalued and a good investment. Truth is that buy backs increase shareholder value, at least in the short term, no matter whether the stock is a good or bad investment. IBM has been a master at this game. Maybe BB&B is following the master?