Comments on: S&P at 800? http://stockmarketbeat.com/blog1/2006/06/19/sp-at-800/ Our beat: The stock market. Our job: Beat it. Tue, 06 Jan 2009 09:09:57 +0000 http://wordpress.org/?v=2.2.1 By: Stock Market Beat » Blog Archive » Break Out The Bubbly http://stockmarketbeat.com/blog1/2006/06/19/sp-at-800/#comment-3737 Stock Market Beat » Blog Archive » Break Out The Bubbly Thu, 28 Sep 2006 00:28:38 +0000 http://stockmarketbeat.com/blog1/2006/06/19/sp-at-800/#comment-3737 [...] Yet even a 13,001 close wouldn’t necessarily invalidate the thesis. Remember, we aren’t predicting a flat stock market so much as that valuations will compress. They may compress at a slower rate than earnings grow, in which case higher stock markets would still fit into the thesis. Or, they could compress at a faster rate than earnings grow and signal an S&P level of 800. [...] […] Yet even a 13,001 close wouldn’t necessarily invalidate the thesis. Remember, we aren’t predicting a flat stock market so much as that valuations will compress. They may compress at a slower rate than earnings grow, in which case higher stock markets would still fit into the thesis. Or, they could compress at a faster rate than earnings grow and signal an S&P level of 800. […]

]]> By: Trent http://stockmarketbeat.com/blog1/2006/06/19/sp-at-800/#comment-3634 Trent Mon, 25 Sep 2006 11:29:47 +0000 http://stockmarketbeat.com/blog1/2006/06/19/sp-at-800/#comment-3634 While it is true that share repurchases are more prevalent today than in the past, one explanation is that a good percentage of the repurchases are simply buying back shares issued as employee options. Therefore they are not so much a dividend as a salary expense. This needs to be considered on a case by case basis, which is our practice. We disaggregate share buybacks into compensation and dividend components and adjust the financial statements accordingly. While it is true that share repurchases are more prevalent today than in the past, one explanation is that a good percentage of the repurchases are simply buying back shares issued as employee options. Therefore they are not so much a dividend as a salary expense.

This needs to be considered on a case by case basis, which is our practice. We disaggregate share buybacks into compensation and dividend components and adjust the financial statements accordingly.

]]> By: Greg Harris http://stockmarketbeat.com/blog1/2006/06/19/sp-at-800/#comment-3408 Greg Harris Thu, 21 Sep 2006 20:58:20 +0000 http://stockmarketbeat.com/blog1/2006/06/19/sp-at-800/#comment-3408 While for the most part I totally respect and listen to what J. Hussman writes (and keep money invested with him), every once in a while he puts up complete garbage and this is one of them. More money comes out in share repurchases than by dividends and this is not true of the historical record. Any analysis should include the total amount of money coming out, not just dividends, otherwise it has no basis in reality -- IMO. Sometimes I think he just likes to scare people, because I think he knows better. Please note, as I say all this, that my opinion of him can't be that bad - I have money with him. While for the most part I totally respect and listen to what J. Hussman writes (and keep money invested with him), every once in a while he puts up complete garbage and this is one of them. More money comes out in share repurchases than by dividends and this is not true of the historical record. Any analysis should include the total amount of money coming out, not just dividends, otherwise it has no basis in reality — IMO. Sometimes I think he just likes to scare people, because I think he knows better. Please note, as I say all this, that my opinion of him can’t be that bad - I have money with him.

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