I’m not sure what to make of this headline so judge it for yourself. I wrote about insider buying picking up dramatically in August/September. I said the two other signs I’d look for were stock buybacks and takeovers. Stock buybacks apparently have picked up but I’m suspicious since companies can easily announce a buyback but not actually do it. If you really want to buy back your stock, just tender for it and get it done!
U.S. companies are buying back the most stock in four years, taking advantage of record-high cash levels and low interest rates to purchase equities at valuations 15 percent cheaper than when the credit crisis began.
Corporations have authorized more than $453 billion in repurchases this year, putting 2011 on track for the third- highest annual total behind 2006 and 2007, data through Nov. 11 compiled by Birinyi Associates Inc. show.
via Stock Buybacks Surge As S&P 500 Trades At Discount – Bloomberg.