Allstate paid over one billion dollars in stock repurchases in the first quarter alone….
The rise of the stock has never been about the performance of the company…it is bought and paid for by the company….
When you want to hide your faltering retention, buy a smaller company.
When you want to bump your stock, buy your own stock…
Smoke and mirrors…The Wilson/Shapiro way…
5 replies (most recent on top)
While a form of financial engineering, it's simply returning cash to shareholders. As you know, they own the company and demand a reasonable risk-adjusted return. Most companies buy back shares to reduce share count and boost Earnings per share, against which varied valuation metrics are applied to determine stock price. Tough to constantly balance growth, profit, employees, shareholders, customers and others. This place has done pretty well given no organic PL growth or market share gains for many years.
"Allstate has operated legally"
"The law, in its majestic equality, forbids rich and poor alike to sleep under bridges, to beg in the streets, and to steal their bread."
Legally but in a crooked manipulative shady sort of way that shows the ethical shortcomings of the hacks running this company.
Stock buy backs are common, you guys don't understand business and it shows
I am not Allstate has operated legally.