The Economy

Since it rolled out that IPO-for-everyone plan, Rivian's stock has been...riven.

I did see their SUV at Shop-Rite the other day.

 

What is the attraction of Rivian?
I've seen a few around. They look boxy and boring, kinda like a plain-wrap pickup truck. But I live in the land of Tesla, so anything goes, eh?

 

Can someone explain to me how we went from a worldwide chip shortage 10 months ago to federal legislation to boost production and state tax breaks for chip makers to expand to a worldwide drop in demand and layoffs?

https://www.oregonlive.com/silicon-...orts-steep-decline-in-sales-poor-outlook.html

 

it’s just like the free market man, you know supply and demand and the market reacting to outside factors within both the private and public sectors

 

I'm sure leadership did everything it could . . .

 

Stock buybacks can have several benefits for a company and its shareholders, including:

1. Increased earnings per share: By reducing the number of outstanding shares, buybacks can increase earnings per share, making the company appear more profitable.
   
   
2. Return of capital to shareholders: Buybacks can provide a return of capital to shareholders, especially for those who choose to sell their shares in response to the buyback.
   
   
3. Demonstrated confidence in the company: When a company engages in a buyback, it signals to the market that it believes its stock is undervalued and that it has confidence in its future prospects.
   
   
4. Better use of capital: If a company does not have viable investment opportunities for its excess cash, a buyback can be a way for it to return capital to shareholders instead of hoarding it or investing in low-return projects.
   

It's important to note that buybacks are not always a good thing and can be a sign of a lack of investment opportunities or a sign that the company is overpaying for its own stock.

 

DraftKings feeling the heat from all the legalized gambling apps?

 

Anybody stupid enough to make an investment decision based on a buyback-triggered change to EPS should be barred from investing in anything other than savings bonds.

 

That sounds an awful lot like illegal governmental intrusion into the stock market to me. For shame!

 

Nobody said it had to be a governmental entity doing the barring, but point taken ...