Objective research to aid investing decisions

Value Investing Strategy (Strategy Overview)

Allocations for June 2020 (Final)
Cash TLT LQD SPY

Momentum Investing Strategy (Strategy Overview)

Allocations for June 2020 (Final)
1st ETF 2nd ETF 3rd ETF

Aggregate Buyback Activity a Useful Stock Market Indicator?

| | Posted in: Buybacks-Secondaries

A reader noted and asked: “Today’s issue of USA Today has a story about a big drop off in company stock buybacks. Any idea what that has predicted in the past, if anything?”


See “The Stock Supply Cycle”: “Results appear to indicate that firm executives are not especially good timers of the aggregate stock market.”

Company-by-company studies generally (not universally) indicate that corporate managers probably have some ability to time their own stocks.

A principal advocate of aggregate issuance/buyback activity (net change in equity trading float) as a broad stock market indicator is TrimTabs Investment Research/Charles Biderman (see “Charles Biderman, Going with the Flow”). Buybacks represent a part of the change in float.

Login
Daily Email Updates
Filter Research
  • Research Categories (select one or more)