Stock Buyback Fail

I loathe stock buybacks, but this one really takes the cake.
Guess what oil company spent $37 billion in buying back its own stock between 2005 and 2008, only to see that investment drop to $15 billion today?
I’ll give you a hint: BP (BP).
That’s about $12 per share that went out the window.
A few weeks ago, several emailers asked if BP was a good buy. I said that a falling stock isn’t a cheap stock. It’s only cheaper compared to where it was. At the time, BP was at $38 a share. On Friday, the stock made a new 52-week low below $27.

Posted by on June 28th, 2010 at 9:59 am


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