>It's one thing when you've got lots of "free cash flow" (profits less
>capital expenditures) to lavish on stock buybacks; it's another thing when
>cash flow turns negative and you're issuing junk bonds to fund the
>buybacks.
Small question, Doug. Isn't "free cash flow" profits plus depreciation minus capital expenditures, since cash flow is profits+depreciation? Depreciation is merely a book calculation and capital expenditures come out of cash flow, not just profits. Some part of the capital expenditures may be replacement and some may be capacity expansion. Don't mean to be picky if you were just using shorthand.
Any idea about the number or proportion of companies buying back stock without the free cash flow?