Yes, theoretically. In practice, managements have a long history of buying stock back at inflated prices and buying back stock simply to hide the shareholder dilution that is occurring due to management equity compensation. I prefer dividends to buybacks.
Companies tend to announce buybacks when things are going well and their stock is fully priced. How many companies were announcing buybacks in December 2008 when it would have really made sense?
Companies tend to announce buybacks when things are going well and their stock is fully priced. How many companies were announcing buybacks in December 2008 when it would have really made sense?