Thread regarding AT&T layoffs

Another entitled strategy to enrich themselves while sticking it to the unvalued employees. Pajama Stankey and crew are wanting their compensation sooner than later because they will be pulling ripcords soon. This strategy allows them to be compensated much quicker than waiting out revenue increase from building out the fiber/mobility network and infrastructure.

Now go RTO and either like it or quit, Stinky would say because others are waiting overseas to take your job at much reduced rates. Globalist at work!

I'm 130 Billion in Debt but I just bought some stock because I want to

1. Boost my earnings per share. ( I had none before now I have some)
2. I wanted to boost my dividend without actually boosting my dividend after cutting it annually since 2020.
3. I want to signal that I have confidence in my future despite bone crushing debt.
4. I want to increase ownership in my own debt
5. I want to increase ROE and Price per earnings without actually impacting my massive debt which would skyrocket both numbers
6. After cutting dividends routinely for the past several years I want to offer shareholders a higher dividend that is not sustainable over time.
7. I want to offset the stock program I offer to my officer class employees who have guided me to finding 130 Billion in Debt - they are the real pot of gold under the rainbow.
8. Tax benes - since most investors are D-mb ASF they won't sell their stock or realize this short term gain and therefore won't be taxed on the growth.
9. Since buybacks only help those with an exit strategy there's not really a #9 here.

dumfuks

What a bunch of id--ts. Let the stock go up 30% and then jump in front of the parade like you’re leading it. SBC way.. buy high and sell low. It’s Just like Biden refilling the strategic petroleum reserves with oil at $100 a barrel. The stupidity of the SBC clown show never ceases to amaze me.

Don't worry about the buyback. It's all part of running a company. Let the big boys do their thing.

Stankey kept a lot of workers employed. Good pay. Good benefits.

I saw the word "debt" and just wet my pants.

“ Simple answer: no. No they should not.”

Spot on.

The question depends on the interest rate on the debt, versus the inflation rate. A lot of this debt was incurred in a lower interest rate environment. Now, government debt is rising at a rate that would seem to require an inflationary environment to deal with, because inflation cheapens debt. And AT&T gets to go along for the ride.

When you have 3 billion more outstanding shares than your closest competitor, it will take a lot more than $20billion to put a dent in it.
With that mo yes, they can purchase roughly 1 billion shares. So they need $60billion to be equal to Verizon’s outstanding shares.
Add that on to the current debt, then explain to me how $20billion will move the stock.
T has a decade long project to correct previous missteps.

Absolutely yes!

It enriches the Stink tremendously!

The worse CEO in US history needs the $

Stink is the worse POS in US business history!

If concerned about financial irregularities, why do you stay?

AT&T buying back their own stock with this much debt load on the books is analogous to a chimpanzee that has a barrel of bananas purchased with a loan, then sells a couple of bananas and takes the proceeds to put a fresh coat of paint on the barrel.

This is fitting because like T, chimpanzees are known for sporadic, jittery, erratic behavior, with a group-think, monkee-see, monkee-do mindset, slapping their chests as their only leverage of ill-perceived dominance over their employee captives. Little did the chimp Stink and little chimp Legg realize that the captives are peeling open the bananas so they rot in place. Poor chimps.

Yes they want the stock price to increase from a buyback and thus their compensation packages, End of story! This is just another entitled bite out of the shrinking apple.

Don’t care how low interest rates are, 130 billion of leveraged debt has put At&T in a tenuous unstable position because the economy, markets or war can change things violently which, will affect sales , free cash flow, etc. Enron and WorldComm failed fairly quickly as examples.

Yes. Stock buybacks are good for the company.

Someone has been using ASKATT.

Stock buyback just boosts executive bonuses as it raises the stock price. Their bonus is tied to the stock price. Don’t read into it any further. You’re welcome.

Thanks, ChatGPT.

What are the benefits of a stock buyback

A stock buyback (or share repurchase) occurs when a company buys back its own shares from the market. Here are the key benefits of a stock buyback:

1. Boosts Earnings Per Share (EPS)

• Reducing the number of outstanding shares increases the earnings allocated to each share. This often makes the company appear more profitable on a per-share basis, which can attract investors and potentially increase the stock price.

2. Returns Capital to Shareholders

• Buybacks provide an alternative to dividends for returning excess cash to shareholders. Unlike dividends, buybacks allow shareholders to choose whether to sell their shares or hold onto them.

3. Signals Confidence

• A buyback signals to the market that the company believes its stock is undervalued, indicating management’s confidence in the business’s future prospects.

4. Increases Ownership Stake of Remaining Shareholders

• By reducing the total number of shares, existing shareholders’ ownership percentage in the company increases, potentially leading to greater long-term gains.

5. Improves Financial Ratios

• Return on Equity (ROE): Buybacks reduce equity, potentially improving ROE, a key metric for investors.
• Price-to-Earnings (P/E) Ratio: A lower number of outstanding shares often reduces the P/E ratio, making the stock appear more attractive.

6. Flexibility Compared to Dividends

• Stock buybacks are discretionary and can be executed as management sees fit, whereas cutting dividends is often viewed negatively by investors. This flexibility allows companies to adjust their capital return strategies based on market conditions.

7. Offsets Dilution

• Buybacks can offset the dilution caused by stock-based compensation for employees or other share issuances, maintaining the value of existing shares.

8. Tax Advantages

• In some jurisdictions, buybacks may have more favorable tax treatment than dividends. For example, shareholders only realize capital gains if they sell their shares, while dividends are typically taxed when received.

9. Potential to Support Stock Price

• By reducing supply and increasing demand, buybacks can help support or increase the stock price, benefiting investors who hold their shares.

Risks to Consider

While buybacks have benefits, they can also signal poor capital allocation if the stock is overvalued, or if the company sacrifices investments, debt reduction, or long-term stability to fund them.

Now if it were me, I’d just pay down debt, cover operating expenses and invest in the company but what do I know.

Remember how past bonuses were tied to free cash flow. It’s what they needed to do this buy back so they could artificially inflate the stock price they destroyed.

Can’t prove to wallstreet that you can afford the buyback if you can’t hit your numbers. So that’s it. That’s the why behind all of this. The stock buyback that they hope will raise the price of the stock.

Simple answer: no. No they should not