Cristian Melej, CFA

[Cristian Melej, CFA @cmelej]

@PatrickKaser @QTRResearch @zerohedge It’s misleading because the real change in p/e between the beginning and end of the chart is probably around 2%, while the picking of the scale suggests a much larger gap.

[Cristian Melej, CFA @cmelej]

@mcm_ct Kind of misleading, earnings expectations have come down around 2% based on the chart? Slightly higher fwd p/e. If the market is really overpriced, this p/e expansion is probably not that material...

[Cristian Melej, CFA @cmelej]

@OddStats @IGOSODAMNHAM I appreciate you sharing your experience.

[Cristian Melej, CFA @cmelej]

@OddStats And the days between the two events...

[Cristian Melej, CFA @cmelej]

@OddStats Would be interesting to know which happened first each year...

[Cristian Melej, CFA @cmelej]

@hussmanjp Nailed it!

[Cristian Melej, CFA @cmelej]

@OddStats Unless you are sitting on cash...

[Cristian Melej, CFA @cmelej]

@hussmanjp Yes but that would require a significant p/e contraction (assuming stable payout) correct?

[Cristian Melej, CFA @cmelej]

@StockBoardAsset Why?

[Cristian Melej, CFA @cmelej]

@ggreenwald Does this justify it?

[Cristian Melej, CFA @cmelej]

@GunjanJS @GrainSurgeon https://t.co/cNaJHtOLyJ

[Cristian Melej, CFA @cmelej]

@GlobalProTrader Imho the problem is not in the buyback itself but how it is used. M&A can also be used by mgmt to benefit themselves at the expense of poor returns for shareholders. At times, Buybacks can be the best use of capital. Look for management teams skillful at capital allocation.

[Cristian Melej, CFA @cmelej]

@JaCampbell394 @asymptosis @GaryMarkoski @DiMartinoBooth @0320scott Agreed. Which is why it’s key for investors to identify management teams who are excellent capital allocators.

[Cristian Melej, CFA @cmelej]

@JaCampbell394 @asymptosis @GaryMarkoski @DiMartinoBooth @0320scott Assume company book value is $1 including $0.5 of operating assets worth 4x (due to excess returns) and $0.5 of excess cash. Company value $2.5. If management can buy back at 2x they can buy 25% of shares using $0.5 of cash. That would leave $2 of value for 75% of shares ($2.67)