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Mark Cuban Talks Stock Picks, Government Bailouts And Buybacks

Mark Cuban Talks Stock Picks, Government Bailouts And Buybacks

Billionaire entrepreneur and investor Mark Cuban said he is "dipping my toes" in the stock market at current levels.

Putting Money To Work

Cuban said on CNBC Wednesday morning he is "putting in 1% to 1.5% to work" whenever the markets are down. He is mostly buying SPDR S&P 500 ETF Trust (NYSE: SPY) units and Live Nation Entertainment, Inc. (NYSE: LYV).

Live Nation's stock has dropped significantly in recent sessions as several concert tours have been canceled or postponed.

In the options market, Cuban said he sold some put and call options to take advantage of the "incredible" and "stunning" premiums. Cuban also said he noticed "more algorithmic trading" entering the market over the past few days and he will "act accordingly."

See Also: Mark Cuban Calls COVID-19 Outbreak The 'Ultimate Definition' Of A Black Swan Event

Government Response

If the government starts offering financial assistance to public companies, these corporations should come with a set of stipulations, including a ban for life from buying back their own stock, Cuban said. It could be possible that taxpayer money eventually ends up as part of a buyback authorization program and this "just the wrong way" to go.

From a historical perspective, companies often use taxpayer money coming in as a bailout to reward executives through stock grants or re-priced options and other benefits.

"Whatever it is that a company does for their executives, they should be required to proportionally do the same thing for everyone else that works for the company," he said. Any and every form of a bailout also needs to include a provision where "every worker gets compensated and treated equally."

Photo by Gage Skidmore/Wikimedia.


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