Past economic research has shown that companies that announce and implement stock buyback programs tend to beat the market. More recent research has shown a more muted results.

The article references even newer research that shows that the stock of buyback companies are indeed good investments when filtering for another factor - the use of accruals and other off-balance behavior to boost stock price.

Taken together, a savvy investor can cherry pick buyback companies and stand a good chance of earning above market returns.

 

Submitted: Dec 16, 2007    Views: 208    Comments: 0    Likes: 2   


View Article: http://www.nytimes.com/2007/12/16/business/yourmoney/16stra.html?re...


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