Guest Grey512 Posted January 22, 2016 Share Posted January 22, 2016 Lately, when looking at 10Ks and cash flow statements, I've noticed something peculiar. Many companies are issuing stock options & stock-based comp whilst doing stock buy-backs at the same time. This is effectively a wealth transfer from common shareholders to insiders. I had some spare time so I started to see if there are commonalities to this whole thing. The worst offenders generally tend to (i) investment banks & financial advisory firms (Canaccord Genuity; Jefferies; Piper Jaffray; Evercore), (ii) tech firms (FireEye; Tivo; CommVault; HP). Some of the popular stocks amongst value investors also suffer from this issue. Outerwall: stock comp as % of market cap is massive at 3% (at the same time, massive buy-backs are going on). Similar thing with eBay. Similar thing with Micron. Just thought I'd share it with this board to see if you guys noticed this and how do you deal with it. Would noticing something like this stop you from investing in the stock? Link to comment Share on other sites More sharing options...
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