S&P 500 Analysis & ETF Trading

[Gbathat]

the way I see it, if they repatriate their $70B and then announce that they plan to use $40B to buy back shares, the o/s count goes down by ratio similar to the buyback amount over market cap. $40B is about 25% of the market cap. So I expect/hope the stock will go up by 20% or more if p/e held constant.

Combine that with the momo of tax cuts, the savings on the repatriation tax rate... could be looking more like 1999 :D

One can hope, right?

Disclaimer: I am not a trader and there could be incorrect assumptions and flaws in this logic, plus it is dependent on most of congress agreeing on something;D


From that article I posted yesterday...
"[CFO] Kramer said that Cisco, which is one of the richest companies in the technology industry with about $71.6 billion in cash, believes that the proposed tax changes in the U.S. would help the company.
If tax legislation passes, “we’ll be able to get much more aggressive on the share buyback” and the company would have more flexibility for spending on acquisitions, she said."

https://www.bloomberg.com/news/articles/2017-11-15/cisco-sees-first-revenue-growth-in-eight-quarters-shares-jump

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