posted on May, 1 2008 @ 05:29 PM
reply to post by jsobecky
You're absolutely right. It is a common practice. I was not surprised to see it happen.
I was not shaming them for doing so - per se - however everyone seems to think they are spending all the money investing in the future. That's
garbage. They spent far more money making sure the earnings per share looked better than they did on capital expenditures.
Walmart Cash Flow
For instance Walmart (I like to use them since they are gigantic also) spent half as much on buying back common stock as they did on expanding.
Whereas Exxon spent four times as much on buying common stock than they did on capital expenditures.
Capital Expenditures (14,937,000)
Sale Purchase of Stock (7,691,000)
Honestly, a companies gotta do what it's gotta do. However, people have been saying a lot of stuff on this thread, and I'm just using financial
statements to back it up or refute it.
Clearly Exxon was far more concerned about stock holder equity than it was with expanding or finding new oil.
reply to post by nyk537
I can't blame you. Sometimes when I'm feeling down I curse Bush and it makes me feel better.
[edit on 1-5-2008 by Sublime620]