Originally Posted by
Rated De
Thus management prefer to buy back shares rather than invest in 'new metal' when 'share price' can be juiced by leveraging the company with cheap debt. Bonus prizes as the very same management incentives hit the stratosphere...
With Qantas using nearly TWO billion of shareholder's funds to reward themselves and boost the EPS with share buy backs, that 'new metal' you talk of is nowhere to be seen.
And it won’t be. Self enrichment and chasing Asian LCC windmills (which would have been themselves spun off) have destroyed what could have been.
I saw video years ago of a Drexel Burnham Lambert Christmas party (they did good parties) featuring the band ‘Starship’ playing a feature ‘We built this city on high yield bonds’.
Just so you do believe me, there’s only a tiny clip online from a BBC docco. Interesting voiceover - ‘destruction of the old corporations’.