My Views On Stock Buyback.

Recently, there is this rage of elite companies participating in Stock Buyback globally like $Apple (AAPL.US)$, $NASDAQ (NASDAQ.US)$, $McDonald's (MCD.US)$. Their active participations make one wonders "What is stock buyback and why it is so popular? This refers to a company's requisition of it's own outstanding shares from the shareholders on the open market.
A company's image and more importantly, it earnings will be enhanced by this move. Stocks' buybacks or re- purchases will reduce the number of outstanding shares on the market. As such a company financial statistics will definitely reflect a more positive outlook in the balance sheet. This is attributed by a reduction of a company's excess cashflow as well as a decrease in the numbers of outstanding shares. With this sudden reduction of the number of shares in the market, it will certainly escalate the value of the remaining shares because of the supply and demand principles.
Personally, it is generally benefitting for the investors because:
It is a flexible way of rewarding the shareholders instead of issuing them with dividends which are taxable.
A boost in share prices will increase the investors confidence in the company's shares.
However, stock repurchase is a double edged sword and if not properly handed
it can mislead the investors to lose more. Ultimately I still favour stock buyback. Some of the more reliable companies to consider are:
$Boeing (BA.US)$ , $Apple (AAPL.US)$ , $Dow Jones Industrial Average (.DJI.US)$