[btilly]

When you have a share repurchase program, you are basically giving a support for the market. It is hard for the stock to go much lower, because the company is always buying.

This statement shows a common misunderstanding of finance.

The market cap of a company represents the market's best estimate of the value of that company. When a company does a share buy-back, the company loses money and destroys stock. The current value of the money used matches the value of the stock destroyed, and so the market cap should be reduced by the amount of stock destroyed. Therefore to first order effects, the result is that the share price should remain constant. (There are second order effects where some value is transferred from stock holders to option owners, which indicates that the share price should go down.)