Share buybacks are one of several ways a corporation can deploy its capital. The first and primary use of capital is often to reinvest in existing businesses, from employee training and customer support to repaying lenders. An alternative use of capital is to acquire new businesses as stand-alone or tuck-in operations. After maxing out the value in these deployments of capital, the next obvious use is either to repurchase shares if they can be acquired cheaply or, if not, distribute the capital to shareholders as a dividend.
By the late 1990s, buybacks had become a common practice across corporate America. Such proliferation raised a new concern: whether managers possessing superior valuation information exploit selling shareholders when buying at a discount. To address this, boards must insist that managers must provide shareholders with all relevant valuation information.
Since the early 2000s, a related problem appeared: executives sometimes become exuberant in preferring share buybacks to boost share price, thereby increasing the value of their stock options. Boards, who must approve buybacks, are advised to police against such self-interested behavior. While there is nothing wrong with boosting the stock price, the buyback should be used only if other uses of capital have been optimized and the existing share price is low.
In short, as the history and economics of buybacks confirms, buybacks are never always good or always bad. They are good when effected at a price below value, when chosen without personal priorities of executives playing a role, and when consistent with optimal reinvestment in the business or compelling acquisitions. In such a complex and contingent environment, the recent imposition of a 1% tax on all buybacks appears to be an exercise in political expediency rather than rational economics. Warren Buffett in his most recent letter to shareholders wrote:
. . . When you are told that all repurchases are harmful to shareholders or to the country, or particularly beneficial to CEOs, you are listening to either an economic illiterate or a silver-tongued demaogue (characters that are not mutually exclusive).
For continuing shareholders, however, repurchases only make sense if the shares are bought at a price below intrinsic value. When that rule is followed, the remaining shares experience an immediate gain in intrinsic value. . ..
The second exception, less common, materializes when a business acquisition (or some other investment opportunity) offers far greater value than do the undervalued shares of the potential repurchaser.
The upshot: share buybacks are part of an overall capital allocation matrix corporations invariably work through. They are neither always good nor always bad. Directors overseeing capital allocation processes should stick to their capital allocation frameworks and not be swayed by political grandstanding. Some might find useful the accompanying capital allocation flowchart taken from another of my books.
First and foremost, I drum. I drum a lot. I also have a steep history in band management, booking, marketing, promotions, information technology and fundraising. Since 1998, I have coordinated multiple fundraising events and raised awareness for several different not-for-profit organizations.
On October 26, 2010, I was diagnosed with high grade, triple negative breast cancer. Within a few short weeks, I came up with the motto "Breast Cancer Can Stick It!" and began raising money for organizations who work to find a cure. On April 8, 2011, after a double mastectomy and four months of chemo, I was pronounced "CURED!" My goal is to help provide assistance for everyone diagnosed with breast cancer to have the opportunity for treatment, and ultimately to be CURED through awareness, early detection, funding, and finally a CURE for breast cancer once and for all...and ROCK while doing it!
April also serves as Chair for the Drummathon Sponsorship Subommittee, Multimedia Committee, and Social Media Committee. She additionally serves as a member on the Drummathon Committee and Drummathon Logistics Subcommittee.
I was born and raised in Ft. Worth, TX., and am the youngest of 4 children. My father is John Howard Griffin, & he was a writer. He wrote a lot of books, but is probably most noted for a book called "Black Like Me." My mother was a stay at home mom, but she was also "everyone's mom." She was one of the most loving and caring women I have ever known, and everyone that knew her, or got to meet her said the same thing. How fortunate was I to have both parents be at home every day? When you are a kid, you don't think of it in those terms, but now, what I would not give to have them both here! I lost my dad, when I was 14, and just starting high school. He died from complications from diabetes. He was a great man, and taught me so many things.
On 7/10/2000, I lost my mother to breast cancer. Unfortunately she didn't get regular mammograms, and rarely went to the doctor for anything, so when they found it, it had spread to other parts of her body. She didn't tell us because she didn't want us to "worry" about her. She fought for two and a half years, but eventually the cancer took her. It was one of the most devastating things to ever happen to me to date.
Flash forward to 8/27/2011, a friend of mine invited me to a breast cancer benefit at a little sports bar. He was the singer in a band called 49th Vibration, and the drummer in this band was April Samuels. She had just recently kicked triple negative breast cancer in the butt, and was selling her "Breast Cancer Can Stick It!" t-shirts out of a box - I bought three of them that night. I remember thinking, "wow, what a cool thing this chick is doing, and what an awesome way to turn a negative into a positive!" I got the opportunity to meet her after the gig. She had short hair, as it was now growing back out from the chemo. You could tell just from seeing her how much passion she has for the cause! I told her how great I thought she was for doing what she was doing. I had gotten a tattoo of a breast cancer ribbon a couple of years prior, in memory of my mom on my left wrist. April noticed it, and asked me about it. I told her about losing my mom 11 years prior, and I could not even get through her story without crying. I was still so affected by it. April was so sweet, she listened to my story, even though I knew that there were other people there that wanted to chat with her. She gave me her full attention, and after it was over, hugged me, and told me how sorry she was for my loss, and how awesome I was. She gave me her card, and said I could call her if I needed anything. She exuded strength, and never did I realize that I would later not only become a volunteer for her foundation, but that she would ask me to be on the Board of Directors!
I became involved with Breast Cancer Can Stick It! in August of 2014, and I have never looked back! I cannot tell you how much April, and this foundation mean to me, there are really no words. I love everything it stands for, and I feel like in some small way I am helping to make a difference in this fight against breast cancer! I may not physically have my mom anymore, but I know that she is with me in sprit, and I know that she would love what Breast Cancer Can Stick It! does. April, eats, sleeps, drinks, and lives for this foundation, and this cause! She is inspiring, and I am so proud to call her my friend! She means what she says.. "It's not about saving breasts.. it is about saving lives!"
I grew up in a small town in West Texas and developed a love for music at a very early age. By the time I was 12 years old, I knew I wanted to be a drummer! I was very involved in my school music program and was the drumline captain. During my Senior year, I became involved with a band that recorded EP's in a Memphis recording studio and later recorded in Nashville with Grammy Award winning producers. I was 17 years old when I made the decision to move to Nashville, Tennessee. As I matured, my love for music grew into the business side of the entertainment industry. I found myself enjoying the concept of advertising, marketing and coordinating events rather performing at them. I then earned my business degree with a focus on marketing in the entertainment industry. Eventually, I made Dallas my home and started working for the Dallas Observer and Houston Press where I focus on marketing and sponsorship campaigns for companies.
When I met April Samuels, I immediately felt called to use my abilities to help grow and promote Breast Cancer Can Stick It! I started volunteering in 2016 to help plan Drummathon. When I look back on all the projects I've been involved in, I have never found something more fulfilling then being Director of Operations for Drummathon 2016. I have a deep connection to breast cancer as my great-grandmother, who I am named after, was a breast cancer survivor. I was very close to my great-grandmother, who was a true inspiration to not let anything in life keep you from your dreams, potential and life calling. I am deeply honored to be able to serve on the Board of Directors for Breast Cancer Can Stick It!
I was born and raised in Eufaula, OK and married my high school sweetheart, Travis, in 1993 shortly after graduation at the age of 18. I attended the University of Oklahoma and graduated from the Price College of Business with a BBA in Accounting in May 1998. I am a licensed Certified Public Accountant (CPA) and Certified Fraud Examiner (CFE). My career experience is in asset-based lending and lender finance in field examination and portfolio management.
I have been a resident of Texas since 2008 and moved to Fairview, TX in 2016. I love spending time with my husband and daughter and helping people understand their business and personal finances. In my down time I like watching movies, reading self help books, and working outside. I also love to travel.
I have a dear friend that is a two-time breast cancer survivor. While I did not know her during her survival journey, I am constantly inspired by stories and her strength as a single Mom and breast cancer survivor.
When I met April and was presented with the opportunity to volunteer for this organization, I was honored to help. April's enthusiasm and passion for her mission is unlike anyone I have ever met. I look forward to helping with the growth of this organization.