Think Buybacks Boost Share Prices? Think Again

Baidu Inc BIDU 0.7% made headlines on Thursday by announcing a new $1 billion share buyback program. The stock surged more that 3 percent following the announcement, as shareholders viewed the move as a sign of confidence on behalf of management.

Buyback Frenzy

Baidu is not the only company that has demonstrated a willingness to repurchase shares of stock lately, particularly in the current historically-low interest rate environment.

According to a recent report by Janus Capital, companies are on pace to spend $1.02 trillion on buybacks in 2015, 18 percent more than they spent in any year prior to the Financial Crisis.

Why Buybacks?

Buybacks are…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common SenseI don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!