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CN launches share repurchase program
As much as CN shares generally gain in value what does everyone else do ? Are strategic transactions of this kind always successful ?
In my opinion share repurchase is just another form of stock manipulation
Repurchases reduce shares outstanding but are normally authorized and operated when stock prices are at or near all-time highs. The repurchased shares are used to balance the massive payouts given to named executive officers in place of salary and labeled as a move to align the NEOs more closely with the rest of the shareholders. Kind of a massive joke on shareholders, especially small stakeholders.
CN’s stock has performed reasonably well compared with the market overall but not by comparison with that of its chief rival the folks that have those red locomotives. CN is probably feeling some pressure to continue and accelerate some “shareholder friendly” actions like this. However, CN stock is at or near an all-time high and notwithstanding that its rival has done much better over the most recent 3 years. It will be interesting to see what happens over the next 3 years or so.