https://seekingalpha.com/article/4094349-intels-appalling-buyback
4 replies (most recent on top)
Intel stock is a terrible investment
Well, costly or not, the buybacks and the dividend kept Intel from sinking until today. But beware the tie when there's no money left for those. The stock will tank like a stone
Got a clown for CEO?
Well, this has been going on a long time and it is a very strong example of why Intel's Board of Directors is incompetent. We have truly inept and incompetent people on the Board and the CEO is no better. This paragraph from the article really sums up how poorly the share buyback program has been managed:
By my count, Intel has spent $24.7B in the last five years but that amount was reduced by the $7.9B in proceeds it has received, for a net expenditure of $16.8B. If we use that figure and compare it to the number of shares by which the float has been reduced – 268M – we get an average price of $63 per share. With Intel trading under $36 right now, for those of you keeping score at home, that isn’t great. Put another way, the number of shares by which Intel has actually reduced the float would be worth about $9.6B today but Intel spent about $7.2B in excess of that amount to accomplish it. In other words, roughly 43% of Intel’s buyback money has gone to frictional costs and issuances. If you think about that for a moment – only 57 cents of every dollar actually worked to reduce the float – you can see how poor Intel’s buyback has been.