homeWelcome, sign in or click here to subscribe.login
     


 

 

Business



Subscriber content preview

December 1, 2004

All Business -- Stock buybacks not always a good sign

  • During this buyback boom, investors should know it can be a risky move.
    • By RACHEL BECK
    AP Business Writer

    NEW YORK — Investors who see company buybacks of their stock as only good news may be overlooking the serious damage that certain share repurchases can do to companies' financial health.

    While many companies are funding buybacks with cash they've accumulated since they aren't spending it on such things as hiring or capital investments, some also launch buybacks using borrowed funds — a potentially risky move.


     
    . . .


    To read this story in full login or purchase a subscription.



    Previous columns:


    
    Email or user name:
    Password:
     
    Forgot password? Click here.