Buying Dollar Bills For $1.10 – S&P 100: Share Repurchase Analysis

Buying Dollar Bills For $1.10 – S&P 100: Share Repurchase Analysis by 720 Global

The following research was jointly produced by: J. Brett Freeze, CFA of Global Technical Analysis and 720 Global

720 Global has written four articles to date on share repurchases and the harm these actions will likely have on future corporate growth rates and the economy. To better gauge the effect of buybacks we join forces with Brett Freeze to present a unique analysis on the S&P 100.

As we have previously noted, a large majority of companies, including 94 of the S&P 100, have actively repurchased shares since 2011. These companies often announce and execute share repurchases without providing a rationale to shareholders. As...