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tdp2664 InvestorPlace There is an old saying that stock buybacks are a good sign because they are proof a company’s best investment is in its own shares. Put another way, management thinks the market is undervaluing its stock – so it is more than happy to buy at bargain prices while they last. The trouble is, most – if not all – CEOs and directors have little incentive to say the company is anything other than oversold. Find a corporate executive admitting he made a mistake and the best-case scenario is that he's at a podium announcing his retirement. More than likely, he's sipping a daiquiri in St. Croix. Yes, some stock buybacks are smart decisions made by good companies with good leadership. But some are just moves to boost EPS figures for the quarter – since, after all, if you can't grow the E in "earnings per share," you can always subtract the S via buybacks that take shares off the market. Other buybacks are merely meat for the PR grinder, where a company announces a plan to buy back billions of dollars of stock and then puts very little actual money toward the repurchase after the SEC filing. Here are five big-name companies whose buybacks may never deliver any value to shareholders: AOL (NYSE: AOL ), TiVo ( NASDAQ : TIVO ), Southwest Airlines (NYSE: LUV ), Covidien (NYSE: COV ), and Hewlett-Packard (NYSE: HPQ ). AOL AOL
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