Forbes
By: Simon Moore
Much has been written about how buying cheaper, smaller companies with rising prices and shorting the opposite, has helped investment returns…
…Issuing shares typically hurts share price performance. Again, the issuance of shares may suggest a firm that demands capital rather than producing it, hurting investment performance. Also, management’s decision to issue equity rather than to fund projects differently or delay them, may suggest a lack of alignment with shareholders. Research by David Ikenberry found that companies that repurchase their own shares tend to outperform the market.
Read the entire Forbes article.