[Majromax]

Money returned to shareholders is the "one true number," even moreso than profit. Retained earnings are only valuable insofar as investors expect them to be returned in the future -- a company that pays no dividends, buys back no shares, cannot be bought out, intends to operate until it goes insolvent, and cannot have a new board brought in to change these policies is "worthless" as an investment vehicle.

So in principle there's nothing wrong with the buybacks. However, investors can have the mistaken impression that these buybacks would continue into the future, and predictions of the future -- and thus the fair stock price -- can change in a heartbeat.