Investing
Qualcomm (QCOM) And Sun Micro (SUNW): Share Buy-Backs Don't Help
Published:
Qualcomm’s (QCOM) board approved a $3 billion share buy-back. The stock moved down after the open and then flattened out at $46.20. Qualcomm is flat this year, while the S&P is up about 20%.
On May 16, Sun Microsystems (SUNW) said it would buy-back $3 billion in stock. That could bring in 15% of the company’s shares. The price has moved from $5.12 to $5.38 since then. That’s about 5%. But, for the last six months, the shares are down almost 5%.
The trouble with these buy-backs is that they cannot hide a troubled company. Qualcomm is still fighting with its largest customer, Nokia (NOK), and is in intellectual property disputes with rival Broadcom (BRCM). Sun has still not be able to demonstrate that it can grow without acquisitions. And, the cost cutting that has helped improve its margins is now largely over.
How about a one-time dividend?
Douglas A. McIntyre
ALERT: Take This Retirement Quiz Now (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
