Over the course of the years, we have repeatedly stated (though probably not as much as many would like us to do) that companies use share buybacks to manipulate earnings. In the past, this gambit was not as prevalent as it is today. Currently, companies borrow money in contrast to using the cash they already have to repurchase their shares and use this modern form of alchemy to turn losses into profits or make moderate profits appear to be spectacular in nature. This bull has yet another bullock’s reason to run higher. We are now in the paradigm of lies and deceit.
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