Comments on: Quote of the day: “Earnings, Dividends & Buybacks” http://www.ritholtz.com/blog/2008/12/quote-of-the-day-earnings-dividends-buybacks/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Sat, 21 Nov 2009 14:57:30 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: ButtoMcFarty http://www.ritholtz.com/blog/2008/12/quote-of-the-day-earnings-dividends-buybacks/comment-page-1/#comment-133969 ButtoMcFarty Wed, 17 Dec 2008 00:19:38 +0000 http://www.ritholtz.com/blog/?p=12635#comment-133969 S&P at 400??? maybe by way of 1400.... :) USD/JPY below 50 is my only prediction. I tripled up my miniForex account today. Even blind donkeys and all.... S&P at 400???

maybe by way of 1400….
:)

USD/JPY below 50 is my only prediction.
I tripled up my miniForex account today.

Even blind donkeys and all….

]]> By: DL http://www.ritholtz.com/blog/2008/12/quote-of-the-day-earnings-dividends-buybacks/comment-page-1/#comment-133673 DL Tue, 16 Dec 2008 04:45:06 +0000 http://www.ritholtz.com/blog/?p=12635#comment-133673 ButtoMcFarty @ 8:29 You are one wooly bear. And what about the S&P…. 400…? ButtoMcFarty @ 8:29

You are one wooly bear.

And what about the S&P…. 400…?

]]> By: constantnormal http://www.ritholtz.com/blog/2008/12/quote-of-the-day-earnings-dividends-buybacks/comment-page-1/#comment-133639 constantnormal Tue, 16 Dec 2008 02:51:47 +0000 http://www.ritholtz.com/blog/?p=12635#comment-133639 There are companies that made money over that time frame, and did not blow it on stock buybacks and dividends. They might spend it on R&D, or maybe not. There are companies with cultures that draw the best out of their people. It shows up as increasing sales, if the company is successful. For these numbers to sum up the way they do, the companies that generate earnings without buybacks and dividends must be exactly offset by other companies that are liquidating the assets of the company (or taking on debt) to fund the buybacks and dividends. Color me skeptical. There are companies that made money over that time frame, and did not blow it on stock buybacks and dividends. They might spend it on R&D, or maybe not. There are companies with cultures that draw the best out of their people. It shows up as increasing sales, if the company is successful.

For these numbers to sum up the way they do, the companies that generate earnings without buybacks and dividends must be exactly offset by other companies that are liquidating the assets of the company (or taking on debt) to fund the buybacks and dividends.

Color me skeptical.

]]> By: ButtoMcFarty http://www.ritholtz.com/blog/2008/12/quote-of-the-day-earnings-dividends-buybacks/comment-page-1/#comment-133631 ButtoMcFarty Tue, 16 Dec 2008 01:29:36 +0000 http://www.ritholtz.com/blog/?p=12635#comment-133631 My one and only financial prediction for 2009. (New thread idea?) USD/JPY will close below 50 before the end of 2009. Cheers My one and only financial prediction for 2009. (New thread idea?)

USD/JPY will close below 50 before the end of 2009.

Cheers

]]> By: ben22 http://www.ritholtz.com/blog/2008/12/quote-of-the-day-earnings-dividends-buybacks/comment-page-1/#comment-133620 ben22 Tue, 16 Dec 2008 00:23:58 +0000 http://www.ritholtz.com/blog/?p=12635#comment-133620 jmborchers Says: December 15th, 2008 at 4:13 pm The movement is SPY between 4:00 PM and 4:15PM is starting to suggest people are investing in the market again. This is the time that many 401Ks are settled. Just remember also that this time of year many profit sharing plans are going to be deposited into q plans, many q plans have set allocation that most people keep the same all the time, it might skew what you think you see. jmborchers Says:
December 15th, 2008 at 4:13 pm
The movement is SPY between 4:00 PM and 4:15PM is starting to suggest people are investing in the market again. This is the time that many 401Ks are settled.

Just remember also that this time of year many profit sharing plans are going to be deposited into q plans, many q plans have set allocation that most people keep the same all the time, it might skew what you think you see.

]]> By: Bruce in Tn http://www.ritholtz.com/blog/2008/12/quote-of-the-day-earnings-dividends-buybacks/comment-page-1/#comment-133596 Bruce in Tn Mon, 15 Dec 2008 22:41:43 +0000 http://www.ritholtz.com/blog/?p=12635#comment-133596 Leftback: I agree 2009 should be continued weakness. The Mortgage Meltdown that Barry posted yesterday wakes you up to the size of the mortgage mess we are facing in 2009 and 2010. By the way, even the ratings agencies, although once again late to the game, have realized there is more mortgage weakness ahead. http://www.housingwire.com/2008/12/15/fitch-alt-a-mortgages-deteriorating-more-rapidly-than-expected/ Fitch: Alt-A Mortgages Deteriorating More Rapidly than Expected Leftback:

I agree 2009 should be continued weakness. The Mortgage Meltdown that Barry posted yesterday wakes you up to the size of the mortgage mess we are facing in 2009 and 2010.

By the way, even the ratings agencies, although once again late to the game, have realized there is more mortgage weakness ahead.

http://www.housingwire.com/2008/12/15/fitch-alt-a-mortgages-deteriorating-more-rapidly-than-expected/

Fitch: Alt-A Mortgages Deteriorating More Rapidly than Expected

]]> By: jmborchers http://www.ritholtz.com/blog/2008/12/quote-of-the-day-earnings-dividends-buybacks/comment-page-1/#comment-133572 jmborchers Mon, 15 Dec 2008 21:13:42 +0000 http://www.ritholtz.com/blog/?p=12635#comment-133572 The movement is SPY between 4:00 PM and 4:15PM is starting to suggest people are investing in the market again. This is the time that many 401Ks are settled. The movement is SPY between 4:00 PM and 4:15PM is starting to suggest people are investing in the market again. This is the time that many 401Ks are settled.

]]> By: DL http://www.ritholtz.com/blog/2008/12/quote-of-the-day-earnings-dividends-buybacks/comment-page-1/#comment-133566 DL Mon, 15 Dec 2008 21:05:58 +0000 http://www.ritholtz.com/blog/?p=12635#comment-133566 Mark E Hoffer @ 3:46 Of course, selling a stock creates a taxable event. But an increase in share price does not. Some people (not me) buy individual stocks and hold them for ten years or more. A person’s tax situation can change a lot in 10 years. (Not to mention the tax law itself). Mark E Hoffer @ 3:46

Of course, selling a stock creates a taxable event. But an increase in share price does not.
Some people (not me) buy individual stocks and hold them for ten years or more. A person’s tax situation can change a lot in 10 years. (Not to mention the tax law itself).

]]> By: jmborchers http://www.ritholtz.com/blog/2008/12/quote-of-the-day-earnings-dividends-buybacks/comment-page-1/#comment-133562 jmborchers Mon, 15 Dec 2008 21:03:08 +0000 http://www.ritholtz.com/blog/?p=12635#comment-133562 I have some lots of IWM long and sold some $49 calls against it which are nearly worthless now. They have 4 days left to go 10% up. I keep selling these on a monthly basis. I have some lots of IWM long and sold some $49 calls against it which are nearly worthless now. They have 4 days left to go 10% up. I keep selling these on a monthly basis.

]]> By: leftback http://www.ritholtz.com/blog/2008/12/quote-of-the-day-earnings-dividends-buybacks/comment-page-1/#comment-133558 leftback Mon, 15 Dec 2008 20:56:20 +0000 http://www.ritholtz.com/blog/?p=12635#comment-133558 @ JM: Don't fight (or trade) the FED. Happiness is a lot of dry powder. I think you underestimate: a) the potential for EOY rally, and b) the size of hedgie redemption selling in '09. Retest and/or new lows are in the cards - earnings will be weak and multiples will contract. @ JM: Don’t fight (or trade) the FED. Happiness is a lot of dry powder.

I think you underestimate: a) the potential for EOY rally, and b) the size of hedgie redemption selling in ‘09.
Retest and/or new lows are in the cards – earnings will be weak and multiples will contract.

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