buyback

US stock market news - NYSE, NASDAQ on 01.08.2017

● BP profit declined in Q2 2017 ● The US imposed sanctions against the President of Venezuela ● VTB and Alipay agreed to cooperate in Russia ● HSBC will pay $300 thousand for Brexit . HSBC will hold a buyback on $2 млрд ● Athenahealth Inc. (NASDAQ: ATHN), service provider for hospitals and doctors, stated, that its board and management team are strategically reviewing the company's operating and financial strategy. ● Royal Caribbean Cruises Ltd. (NYSE: RCL) reported receiving 2 quarter profit of $370 million ($1,71 per share) compared to $230 million ($1,06 per share) a year earlier. Revenue for the reporting period increased to $2,20 billion s $2,11 billion.

Buy back shares

Buyback or Buyback, buyback (from English. buy back - buyback) — redemption by the issuer of its own shares. In most cases, share buybacks by a company are considered to be an indicator of the company's surplus cash., however, it is often a forced measure, against the fall in the company's market value. As a result of this transaction, net earnings per share increase., which entails an increase in confidence in the company among investors and has a positive effect on exchange rates. Repurchase of shares for their subsequent cancellation avoids the dilution of the company's capital due to the issue of new securities. During periods of market decline, the number of companies increases, who announce the buyback of their shares. Share buybacks are fairly common. Nevertheless, the trading community often does not realize the value of such news and the possibility of their use in the process of investing or analyzing.

Fundamental analysis of the company

Analysis of reporting documents B 1934 year due to the incomparability of financial statements and for a number of other reasons, the US Congress created the Securities and Exchange Commission (Securities and Exchange Commission – SEC). The Commission was empowered to regulate the activities of all companies, issuing securities to the market. One of the main goals of the SEC is to ensure the accuracy of financial information in the reports published by the firm.. To achieve this goal, Generally Accepted Accounting Principles have been developed. (Generally Accepted Accounting Principles – GAAP). One of the main goals of GAAP is to provide such a financial reporting structure., which allows you to compare the documentation of different companies.

Share buyback (buyback)

Corporate buybacks this year may reach their highest level since the start of the financial crisis, escalating debate over the wisdom of using hundreds of billions of dollars to temporarily improve quarterly results. Even if the total profit does not change, buybacks increase earnings per share (Earnings Per Share, EPS) by reducing the number of securities in circulation. The main focus of analysts and investors is not usually on the total profit margin., namely EPS. Buybacks criticized by some fund managers, including Larry Fink - CEO of Blackrock (assets under management 4,5 trillion dollars). In his opinion, some companies are too keen on buyouts and do nothing for long-term business prosperity. Politicians pay attention to the problem too. Democratic presidential candidate Hillary Clinton called for more and more full disclosure of company operations. That being said, some activist investors see buybacks as a way to return money to investors..

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