Sat Mar 23 14:04:44 NZDT 2019
Seems that Oracle has been buying back its own shares to keep its share
On its own, this is not automatically a bad thing. I remember reading
about a conversation between Steve Jobs and Warren Buffett some years
ago, along the lines of:
WB: You think your company shares are undervalued?
WB: You have plenty of spare cash on hand?
WB: Then use some of that cash to buy back some of your own
shares. If you can spend 80¢ and get a dollar, why wouldn’t you?
However, the warning sign in the above article is this:
The overall effect is that Oracle is now in a net debt position for
the first time since 2008, the Wall Street Journal reported this
In other words, it seems to be borrowing in order to boost its share
price. This might not end well ...
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