10-15-2014, 09:27 PM
(10-15-2014, 10:56 AM)Roadmap2Retire Wrote: YES!
This is how you spend the extra cash that you have in your coffers. I am sick of seeing other companies buying back their own shares at all-time highs and trying to engineer their financial statements. I have been quite vocal about this on my blog and have received quite a bit of criticism on my thoughts. While buyback has its place, most companies are just doing it to either reward their own board members/execs or to keep Wall St happy by eke-ing out EPS beat by 1 or 2 cents (companies like IBM and INTC).
When theres extra cash, I'd rather see companies either invest or pay down debt instead of buying their own stock. Since QCOM doesnt have any debt, investing is the best use of the cash.
Agreed. It's great that they were able to make a $2.5b acquisition with cash on hand and still have no debt. But, QCOM does buy back a lot of stock, and it doesn't seem to have reduced their share count over the past 5 years.