« India Fund throttled, Thurs., Oct. 13, 2005, 9:54 AM | Main | Refco is one big mess today, Thurs., Oct. 13, 2005, 10:30 AM »

October 13, 2005

Share buy-backs, Thurs., Oct. 13, 2005, 10:14 AM

One analyst is reporting that share buybacks by the Big Six Oil Companies have reached $40 billion in 2005. That's going to help the earnings per share growth!

But are the earnings any different?

And has anybody looked at the unit growth of Big Oil shipments this year? It's non-existent.

That of course is a sign the global economy is not growing as fast as TH's say.

We all know " and suffer " through oil price increases, and we know that Big Oil has become a pseudonym for Big Coin" if you will.

Cash flow being put into share buy-backs is putting money back into the economy faster than Greenspan can take it out. That helps gold prices.

But the key to share prices rising again in this sector is the unit growth number. With rising unit growth, that's an indicator of a strengthening economy, where real wealth is being created. And that hurts gold prices.

Posted by Posted by Bill Cara on October 13, 2005 10:15:47 AM | Category: 10 Energy