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Bloomberg - S&P 500 Companies Spend Almost All Profits on Buybacks

http://bloom.bg/1uPbtDG

A way to fool investors into thinking company is doing well and hit the management internal target for stock option.

Something like that; a correct financial operation at best; for exemple, Lehman Brothers was buying back its stocks before collapsing

From a total return perspective, companies are as bad timers as the average investor. Mergers and Acquisitions tend to peak with markets too. Both indicate exhaustion of profit opportunities in the broad economy.

http://blogs-images.forbes.com/jessecolombo/files/2014/07/buybacks.png

EDIT: sgbett beat me to it.

great graph

Companies buy their own stocks when it is high, and don't when it is low?

are companies supposed to be smart?

they're kinda like central banks...