Tuesday, June 27, 2006

Are Share Buybacks a Shell Game?

Cisco Systems, Yahoo and Affiliated Computer Services are some of the many companies that have recently started share repurchase plans or increased the size of previous ones.
These kinds of announcements usually win gold stars from analysts and pundits, who consider them a prudent way to funnel cash back to investors. TheStreet.com puts a negative spin on the trend, however, suggesting Tuesday that share buybacks are often just a way to stanch the dilution caused by the unbridled use of stock options.

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