AMD Announces $4 Billion Share Repurchase Program
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anticupidon
So, invest?
Noisiv
Is this even legal -> announcing a buyback without specifying a period.
PS
stock buybacks - that's where your jobs went. instead of investing in growth and R&D lets do some gambling. considered illegal until 1982.
CEOs love it.
Brit90
https://www.facebook.com/AOCFans/videos/aoc-questions-how-stock-buybacks-are-different-from-illegal-pyramid-schemes/367738077180619/
She explains it incredibly well.
The companies now make more money with the buyback stock.
I can't find a youtube link - but this is the only link I found with AOC explaining it -5 minutes -
Brasky
Loobyluggs
Noisiv
Loobyluggs
Noisiv
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Clouseau
If this was illegal, the SEC would have been all over them. That being said, the simple way to look at all this is that offerings are the only time the issuing organization receives any funds. So buy backs are just the organization paying back the loan. It also allows the organization to offer the stock that was bought back as purchase options to executives and such. They can also be held for when additional funds are needed from investors that are satisfied with a stake in the company as collateral. Having a buy back window is not necessary. Just an announcement signifying their intent if the plan meets certain requirements. If the intent was to go private again, that would need to be disclosed as the goal of the buy back plan. Otherwise all that is needed is the amount of the buy back. The greater the percentage of the buy back is of the outstanding stocks, the greater amount of information that needs to be disclosed.
RED.Misfit
They're just trying to stop the dilution, a dilution that will increase when Xilinx is acquired.
Coming from 700 millions shares years ago and talling to around 1,7 billion shares at years' end. They used the dilution to finance themselves (and also to acquire Xilinx with share trade only) and today it is not required anymore for company investment, they can invest what they got on free cash flow and the debt is minimal compared to that.
If they don't stop it, value per shareholder will lessen. And the only thing they can do to stop that is a repurchase program to deflat the total number of share.
They don't do dividend and they have to keep shareholder "happy". The stock price is on a negative momentum since the beginning of the year, even if the results are stellar.
Valken
In other words, BUY AMD. NOW. with your pillow, mattress or sock money.
Noisiv
https://www.journalofaccountancy.com/issues/1999/may/mccarthy.html
Assuming no pending developments prevent a buyback and the company's legal counsel gives its blessing, the next step for the executive administering the program is to get board authorization for it. That authorization should state both a dollar or share purchase limit and a time frame—for example; $5 million over one year, 3% of shares outstanding over the next six months or a half million shares before year-end. After the board makes its decision, the company should issue a press release detailing the program.
Referring to SEC authority is a pretty convincing argument why it might be legal. Though not why it makes sense to leave the buy-back period unspecified.
Clouseau
The only reason a timeline is included is that it makes the terms of the program finite, not open ended. The important aspect of the buy back is the per share price range that is willing to be paid to accomplish the task. The board has only given permission to buy back so much within a particular price range. The timeline is only there so the program does not last forever. If the price per share never hits the range authorized by the board, nothing is repurchased but the amount of cash needed to fulfill the goal remains restricted for the entire length of the program. The specified timeline is there to highlight how long the company is willing to restrict the amount of cash needed to accomplish repurchasing the maximum volume of shares. Restricted cash for any purpose is disclosed on the financials along with why the cash is restricted. The timeline is presented to state when the company is allowed to have access to that cash again, for other purposes, if any remains unspent. There is nothing preventing the program from being terminated before the deadline regardless of the volume that has been repurchased. All that is required is a press release essentially stating that the program was terminated early.
Loobyluggs
Noisiv
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Noisiv
Airbud
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