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December 2, 2014

Jonathan Tobin: Defending the Right to a Jewish State

Heather Hale: Compliment your kids without giving them big heads

Megan Shauri: 10 ways you are ruining your own happiness

Carolyn Bigda: 8 Best Dividend Stocks for 2015

Kiplinger's Personal Finance editors: 7 Things You Didn't Know About Paying Off Student Loans

Samantha Olson: The Crucial Mistake 55% Of Parents Are Making At Their Baby's Bedtime

Densie Well, Ph.D., R.D. Open your eyes to yellow vegetables

The Kosher Gourmet by Megan Gordon With its colorful cache of purples and oranges and reds, COLLARD GREEN SLAW is a marvelous mood booster --- not to mention just downright delish
April 18, 2014

Rabbi Yonason Goldson: Clarifying one of the greatest philosophical conundrums in theology

Caroline B. Glick: The disappearance of US will

Megan Wallgren: 10 things I've learned from my teenagers

Lizette Borreli: Green Tea Boosts Brain Power, May Help Treat Dementia

John Ericson: Trying hard to be 'positive' but never succeeding? Blame Your Brain

The Kosher Gourmet by Julie Rothman Almondy, flourless torta del re (Italian king's cake), has royal roots, is simple to make, . . . but devour it because it's simply delicious

April 14, 2014

Rabbi Dr Naftali Brawer: Passover frees us from the tyranny of time

Greg Crosby: Passing Over Religion

Eric Schulzke: First degree: How America really recovered from a murder epidemic

Georgia Lee: When love is not enough: Teaching your kids about the realities of adult relationships

Cameron Huddleston: Freebies for Your Lawn and Garden

Gordon Pape: How you can tell if your financial adviser is setting you up for potential ruin

Dana Dovey: Up to 500,000 people die each year from hepatitis C-related liver disease. New Treatment Has Over 90% Success Rate

Justin Caba: Eating Watermelon Can Help Control High Blood Pressure

The Kosher Gourmet by Joshua E. London and Lou Marmon Don't dare pass over these Pesach picks for Manischewitz!

April 11, 2014

Rabbi Hillel Goldberg: Silence is much more than golden

Caroline B. Glick: Forgetting freedom at Passover

Susan Swann: How to value a child for who he is, not just what he does

Cameron Huddleston: 7 Financial Tasks You Should Tackle Right Now

Sandra Block and Lisa Gerstner: How to Profit From Your Passion

Susan Scutti: A Simple Blood Test Might Soon Diagnose Cancer

Chris Weller: Have A Slow Metabolism? Let Science Speed It Up For You

The Kosher Gourmet by Diane Rossen Worthington Whitefish Terrine: A French take on gefilte fish

April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review

What Investors Should Know About Share Buybacks

By Kathy Kristof





The buyback binge has enriched shareholders both directly and indirectly --- it may be ending


JewishWorldReview.com | Some of the biggest buyers of U.S. stocks in the past few years have been U.S. companies themselves as they pick up their own shares at bargain prices. Over the past 12 months, 431 of the 500 companies in Standard & Poor's 500-stock index have repurchased their own shares, retiring $448 billion in equity.


The buyback binge has enriched shareholders both directly and indirectly. Dividing corporate profits by fewer shares gives investors a bigger share of corporate assets; think of it as owning a bigger stake in a company without having to buy more stock. And although per-share earnings and share prices don't rise in lock step, they're closely correlated, which has helped to keep the stock market rally going even in a slow-growth environment. Expect buyback activity to remain brisk, at least through the first half of 2014, says Lowell Yura, investment strategist for UBS Global Asset Management. For now, low interest rates and still-tepid economic growth leave companies with few better ways to invest their cash.


But market conditions are changing in ways that may make buybacks less attractive later in the year. Shareholders reap the most rewards from buybacks when a company retires shares on the cheap. That's made the past few years an ideal time for the strategy, as stocks were selling for historically low price-earnings ratios, and interest rates and economic growth rates were near zero. Now, stocks are selling for prices that, on average, equate to about 15 times estimated 2014 earnings--close to the historical average, says investment strategist David Lafferty, at Natixis Global Asset Management. Stocks aren't expensive, but they aren't as cheap as they were when the buyback trend got rolling two years ago. As the market continues to rise, many firms may find their shares too dear to retire.


Moreover, the economy is gaining steam. That means an increasing number of companies may need more of their cash to build up inventories and invest in research, new plants and equipment. Those investments accommodate future sales growth, which, in turn, fuels earnings. "That's a good sign for stocks in the long run," Lafferty says.


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You needn't avoid companies that continue to engage in buybacks. But investors will have to look more carefully at a company's motivation for repurchasing stock. Some firms use buybacks to fuel compensation plans that give generous stock grants to executives, for example, with little or no net share shrinkage as a result. Joseph Becker, investment strategist at PowerShares, which manages the PowerShares Buyback Achievers (symbol PKW) portfolio, says his fund buys shares only in companies that retire at least 5% of their shares as part of the buyback. That ensures the money used for the buyback will boost earnings per share. IBM, for example, bought back $11 billion worth of stock in the 12 months that ended September 30, boosting per-share operating earnings 17 cents.


Listen to what managers say about why they're buying shares. Executives who believe their company's shares are unjustly cheap could be flagging a stock market bargain. Companies that say adverse industry conditions leave them with few better uses of corporate cash, by contrast, are throwing in the towel.

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Kathy Kristof is a Contributing Editor at Kiplinger's Personal Finance.



All contents copyright 2013 The Kiplinger Washington Editors Distributed by Tribune Media Services. All rights reserved.

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