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Tide turning against buybacks ahead of the market top

FT reports that there has been a change in corporate buyback behaviors, as companies prefer not to deploy their cash to buy back their stocks. While traditionally, companies that engage in buyback behaviors are often rewarded during post-crisis rally, it has been reported that TrimTabs, the US research group, shows that money spent on buying back stock in each of the last two months has been the lowest since January 2013.

And one possible reason is that companies fear that their own company’s stocks may be overvalued. This comes at a time when there are more new offerings in the market, with notable ones being GoPro’s IPO in recent weeks. This begs the question, how long more would the equity rally continue?

Read more at http://www.ft.com/intl/cms/s/0/da7af7d6-fe16-11e3-acf8-00144feab7de.html#axzz36CcgBUKt

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Daily Bamboo Insight: 01/07/2014

Daily Bamboo Insight

Macro 

1. Secrecy of Dark Pools Can Blur Both Ways; what seems to have escaped notice is that a lack of transparency is almost sure to invite abuses

http://dealbook.nytimes.com/2014/06/30/secrecy-of-dark-pools-can-blur-both-ways/?_php=true&_type=blogs&emc=edit_dlbkpm_20140630&nl=business&nlid=36114517&_r=0

2. Hedge funds’ correlation with the equity market has risen back to pre-financial crisis highs, raising fears that the $2.7tn industry could again suffer sharp losses in the event of a market slide

http://www.ft.com/intl/cms/s/0/b5ad4370-fde7-11e3-acf8-00144feab7de.html#axzz36A4WnU9X

3. FASB Turning Back Clock on Global Accounting, IASB Leader Says

http://ww2.cfo.com/gaap-ifrs/2014/06/fasb-turning-back-clock-global-accounting-iasb-leader-says/?utm_campaign=CFOWeekly&utm_source=CFO-email&utm_medium=email&utm_content=CFOWeekly_Friday_2014-6-27&utm_term=the-economy

4. Soros Dabbles in Shareholder Activism

http://dealbook.nytimes.com/2014/06/27/soros-dabbles-in-shareholder-activism/?emc=edit_dlbkam_20140630&nl=business&nlid=36114517

 

Life

1. Warning, high voltage: scientists solve mysteries of electric fish http://www.reuters.com/article/2014/06/26/us-science-fish-idUSKBN0F12UW20140626

2. Passion for Reality: The Extraordinary Life of the Investing Pioneer Paul Cabot

http://www.amazon.com/gp/product/0231167466?ie=UTF8&camp=1789&creativeASIN=0231167466&linkCode=xm2&tag=moi0e-20

3. Sleep as a Competitive Advantage

http://dealbook.nytimes.com/2014/06/27/sleep-as-a-competitive-advantage/?emc=edit_dlbkam_20140630&nl=business&nlid=36114517

 

Energy

1. Following long ban, U.S. could dominate global light oil supply

http://www.reuters.com/article/2014/06/30/us-oil-exports-u-s-idUSKBN0F50B320140630?feedType=RSS&feedName=businessNews

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