Tuesday, September 24, 2013
Viacom's Massive Buyback Signals Good Times Ahead
Back when it released its Q2 2013 earnings report, Viacom (NASDAQ: VIAB ) announced that it would double its stock buyback plan to $20 billion from the previous $10 billion. Most investors have a negative view of stock buybacks, but research shows that significant buybacks that reduce share counts tend to outperform the market.
The diversified media entertainment sector appears overly competitive, but the sector in general has outperformed the S&P 500 over the last couple of years. One thing that the general group has shared as a whole is the desire to buy shares back over time. Some of the companies like Walt Disney (NYSE: DIS ) and Time Warner (NYSE: TWX ) weren't as aggressive in the last year, but the buybacks have continued to set the group apart.
Read the full article here.
Disclosure: Long TWX. Please review the disclaimer page for more details.