Seeking Alpha contributor Macro Investor recently wrote a follow up article, More Proof That Share Buybacks Do Not Add Value, to his original piece on the subject, Smart Investors Should Ignore The Gimmick Of Intel Share Buybacks. In his first article, he took Intel (INTC) management to task stating that Intel's recent debt offering to be used for share buybacks was a "gimmick" that "smart investors should ignore" the debt-financed buyback because it doesn't add value to the company. In his follow up article, he posits that because the PowerShares Buyback Achievers Portfolio ETF's (PKW) massive outperformance of the major stock indices over the past five years is somehow due to the Federal Reserve's quantitative easing programs and is not "statistically significant," it too should be ignored. This is used as "proof" that buybacks do not matter and, again, should be ignored by investors. I will use this article to show that this hypothesis is imprudent.
I posted a rebuttal to Macro Investor's first Intel article titled, Intel's Buybacks Are Not A Gimmick: A Rebuttal, in which I postulated that share buybacks alone are n