I read it, and think the author is an idiot.

"The Invest-in-Yourself Fallacy: Executives often assert that the best investment a profitable company can make is to buy its own stock. However, when a company pays more for its shares than intrinsic value, which has usually been the case, the directors are making a bad investment and harming shareholders. In any event, stock buybacks are not investments, but only a reduction in capital."

Where's he get that (bold)? Is he suggesting that companies buying back stock pay more than market price? Right..... The market price IS the intrinsic value. IF they paid a little more, that becomes the intrinsic value.

I'd hate to read what this guy thinks of companies investing in IR&D ("it's a waste, I tell ya, costs way too much with no certain benefit"), or compensating employees ("it's a waste, I tell ya, most employees don't do much if anything - don't need 'em!").

Your post and repost of this non-sense is a subtle bash at PTSC, nothing less. PTSC is buying back stock, so you post this goofy logic to suggest it's a bad move.

I'll put this way, based on the author's attitude, PTSC should not only stop buying back stock but should issue more - as much as they can get authorized. After all, that will increase cash and capital.

And how would any Long feel about that? And what would happen to the PPS? And apply this to any company.

JMHO,

SGE