With GM’s stock price jumping 10% today largely based on its announcement to buy back its own stock, what are people’s opinion’s/insights on what a buyback means for a company? This buyback has certainly resulted in a nice rise in their stock, but I’ve also long thought that a buyback is an admission that a company has nothing worthwhile to invest in. That they’re out of ideas and not innovating. In other words, it’s a poor use of cash and resources that won’t lead to long term growth. Other thoughts on what a buyback indicates for a company’s short- and long-term health and growth?
