A stock buyback is a risk-free way of ensuring earnings accretions. As long as borrowed funds remain cheap, as they have for some time, it's also an inexpensive way to boost one's earnings per share. |
Boeing can easily afford this purchase, with nearly $10 billion in cash and marketable securities on hand at the end of the first quarter, and bountiful free cash flow even after substantial pension fund contributions. |
Even at these weaker levels we still consider tobacco company paper unacceptably risky. |
Getting into a bidding war with J&J is bad enough. But getting into a cash-throwing contest with J&J is even scarier. |
Market nervousness can lead to counterparty nervousness, which can lead to rating agency nervousness and banker nervousness, and the company's financial flexibility could become impaired. |
There's no reason to believe this name has bottomed out. |
This does not have the earmarks of a long-planned management transition. |