GE and Buy Backs

Last week GE released an earnings update-they would miss the ANALYSTS expectations. They maintained their dividend, but they cut their share buyback program. How much have they bought back over the last 5 yrs and what was the average price. According to their annual report, GE purchased 13.9 bln of stock (357mm shares=avg. cost of 38.9) in 2007. In 2006, GE purchased $7.8 bln of stock (229 mm shares=avg. cost of 34.06). Today they issue 12 bln of common stock at $22.50. WHAT is WRONG with this picture. Very simply management is inept-buying high and selling low. Instead of paying down debt and giving shareholders a bigger dividend, GE wasted its capital buying back shares that were issued under employee/executive pay programs. The more complicated the books, the more likely their is some dirty laundry in the mix. On top of that, Warren Buffett continues to build his cash spinning empire by buying a special class of preferred shares (10% dividend yield) plus warrants thrown into buy the common shares. Sounds to me like another round of expensive financing ala Goldman Sachs.
On a positive note, LIBOR dropped to 4% today from 6%, so all those short term LIBOR based loans are a little less expensive today. Let's see how long this lasts.