Recent Posts

Pages: 1 2 [3] 4 5 ... 10
Politiw00kchat / Re: Have you heard about...? (Politics edition)
« Last post by slslbs on Today at 09:14:47 AM »
We were discussing how great those tax cuts would be.

. Here's How America's Biggest Companies Are Spending Their Trump Tax Cuts (It's Not on New  Jobs)
We’re starting to learn what America’s biggest companies are doing with the huge windfalls from President Donald Trump’s tax cuts. And the answer is great for investors – but not so great for workers.

That’s because many companies are returning huge portions of their billions in tax savings to shareholders in the form of share buybacks and dividend increases — not necessarily new hiring and investment.

Companies are on track to plow a record $1 trillion into boosting dividends and buying back their own stock this year, says Howard Silverblatt, senior index analyst S&P Dow Jones Indices.

Buybacks are a strategy to boost stock prices – by reducing the number of shares outstanding, which artificially increases a company’s earning per share. But they do little to improve the economy.

Companies in the S&P 500 have also increased dividend payments to shareholders 182 times so far this year, giving investors greater incentive to buy and hold their shares, according to Silverblatt.

The Trump tax cuts, which slashed the corporate tax rate from 35% to 21%, boosted corporate profits overnight for many big firms. Combined with the new provision that caused U.S. companies to repatriate billions in overseas earnings, many companies are awash in cash.

But, says Michael Patcher, an analyst at Wedbush Securities, “The tax law didn’t do anything to provide an incentive to employers to create jobs. There’s nothing in there that would suggest that employers have a particular incentive to hire more people or pay the ones that they have more money.”

Apple, as usual, is leading the pack with a record-breaking $100 billion stock buyback. That’s a huge chunk of the $252 billion in foreign profits that it brought back to the U.S. because of Trump’s tax bill.

Here are some of the biggest stock buyback announcements so far in 2018, according to Kiplinger.

Apple – $100 billion
Cisco – $25 billion
Wells Fargo – $22.6 billion
Pepsi – $15 billion
AbbVie – $10 billion
Amgen – $10 billion
Google parent Alphabet – $8.6 billion
Visa – $7.5 billion
eBay – $6 billion
Investors can expect even bigger buybacks after the first half of the year ends, says Silverblatt.

“Buybacks are a short-term win-win situation with immediate net gratification,” he said. “Buybacks move quicker and have more flexibility. So we’re seeing those increase quicker in response to shareholder demands.”

The record-breaking buybacks are especially great news for executives at the companies whose compensation is tied to the stock price because it makes the stock more valuable. Apple stock jumped following the buyback announcement on May 1 and is up more than 11% so far this month.

To be sure, Apple – like many other companies – has announced huge, multi-year proposals to invest in U.S. jobs. In January, CEO Tim Cook revealed a five-year, $350 billion plan that includes building a second headquarters as a result of the $38 billion a year the company is saving on taxes.

Other companies like AT&T, Walmart and Bank of America announced one-time bonuses of $1,000 for eligible employees as a result of tax cuts. But, a survey by Morgan Stanley predicted that workers would get 13% of the tax windfall – compared to 43% that was expected to go to investors in the form of stock buybacks and dividend increases.

Last week, political activist Ralph Nader wrote an open letter to Apple CEO Tim Cook imploring him to spend the tech giant’s influx of cash on workers instead of short term benefits for executives and investors.

“For less than 2 percent of your $100 billion buyback, or $2 billion, you could award a full year’s pay bonus to the 350,000 Foxconn workers who build your iPhones,” Nader wrote. “Think of the economic relief and happiness that gesture would produce. These workers sweat for your immense wealth in difficult workplace conditions, unable to afford the Apple phones they manufacture for your company’s massive profits.”

None of this behavior is a surprise for analysts, said Patcher, the Wedbush analyst. Companies like Apple have already been enjoying the fruits of the rising economic tide and have already made most of the investments that make sense to them, he said. This means they don’t need to put any of their newly earned cash toward new jobs and major projects, especially now that they’re even more profitable than before.

“When public companies make more profit it is incumbent on those companies to do the best thing for their shareholders,” he said. “The only reason any of them would invest more in the U.S. is if we changed the tax structure so that it’s advantageous to invest in the U.S.”

General Topic Discussion / Re: Brokedown Podcast
« Last post by rowjimmy on Today at 09:03:51 AM »
Episode 20 is up!

Jeff Conklin comes back for more trekking up the Oregon Trail.

We also talk about Matt Valentine.
Entertainment / Re: Arrested Development is BACK!!!!
« Last post by mistercharlie on Today at 05:53:03 AM »
Wow, I hadn't heard about the season 4 recut. I know what I'll be watching all week while waiting for season 5.
Sports Talk / Re: !!!NBA!!!
« Last post by Hicks on Today at 12:56:46 AM »
Pretty happy about how the series has gone so far.  I'm also hoping the Celtics split the two games in Cleveland, as I believe I will be going to a Game 5 if it is needed...

It will be needed. Boston is 1-4 on the road in the playoffs and I don't see them beating Lebron 2 in a row in Cleveland.

Fully aware of the record and the fact that Lebron is still the best player on the planet. Just being optimistic about this team. I’ll be honest, about 5 minutes into the season, I thought the season was done. Then Kyrie. Then Theis. Then Smart, whose return was critical in squeaking by the Bucks in the first round. Then Jaylen, who seems to have recovered quickly but missed critical time in the playoffs. We have been playing with house money since the first game, and I prepared for the end right from the start. It’s nice to finally feel optimistic about this team. Maybe it’s still cautiously optimistic, but I’m getting there...

Welp, you got your wish.

Have fun, Celtics are gonna need your support to turn things back around. 
Politiw00kchat / Re: Gun Talk Re: have you heard about...?
« Last post by mbw on Yesterday at 11:38:38 PM »
Let us have a moment of silence and pray for the victims

If you are expecting anything more...

Well, we now have this...


I feel awful I prayed that for a solid minute till I realized I wasn't gonna win.

The good news is you will be able to try again soon...
On Some Other Tour / Re: The Jauntee Spring/Summer 2018
« Last post by WhatstheUse? on Yesterday at 11:01:06 PM »
I appreciate that guys.  :beers:
On PHISH Tour / Re: 2018 Fall Tour
« Last post by WhatstheUse? on Yesterday at 10:58:36 PM »
That Albany ‘97 run is one of my all time favorites.
Sports Talk / Re: NHL Playoffs 2018
« Last post by antelope19 on Yesterday at 10:49:51 PM »
Entertainment / Re: Arrested Development is BACK!!!!
« Last post by ytowndan on Yesterday at 09:38:41 PM »
Watched about half of the Season 4 re-edit. I’m glad they recut it, really enjoying it.

Hmm...I'm not familiar with this.  Just looked it up and it sounds like an improvement to me. 

Thanks for the heads up!  I was considering a rewatch in prep for the new season anyway. 
Entertainment / Re: Arrested Development is BACK!!!!
« Last post by mattstick on Yesterday at 09:20:36 PM »
Watched about half of the Season 4 re-edit. I’m glad they recut it, really enjoying it.
Pages: 1 2 [3] 4 5 ... 10