Re: Why is a company offering to buy back their stock higher than value?
Fly:
The reason companies buy-back stock is because they have too much cash and they don't know what to do with it. This is generally a signal that the Company is flattening out and doesn't expect huge growth in the future.
Home Depot is basically played out - they have no more room to add stores and thus growth will slow and track the general economy. The Street did not like their wholesale strategy and they are trying to unload that side of the business.
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