Flying off into the sunset.

The Corporate Overlords have announced half million share stock buyback program. So, after announcing a $10 million dollar lost for 2005, they are going to spend $4 million to take shares out of the market.

Why?

Well, the simple answer is that taking stock off the market increases the value of the remaining shares. Most often, this is done for stocks that are considered undervalued. Considering that the stock value of the Corporation is the lowest it's been in years, the market clearly doesn't consider it undervalued. If it's not an undervalued price, buybacks can keep the price up for insiders planning on exercising options.

So, are the top execs trying to take the money and run? I've been snooping on some market watch discussion boards and there has been some fascinating discussions about a recent conference call with the Chief Executive Overlord. Did he really get a big bonus ($500,000) and a new airplane (2005 Hawker 800XP)? According to one article, the Corporate Overlords claim that they are leasing the plane but the FAA says differently. If they aren't running, they are clearly bleeding the company for whatever they can personally get regardless of what it does to the company itself and the employees.

If they were genuinely interested in the company (or their customers), they would be investing in the product, not trying to float the stock prices. Produce a good product or service and the stock price will take care of itself. Of course, that would take someone who isn't a money grubbing bastard.