Chinese Internet search leviathan Baidu (BIDU -4.25%) announced its first share-buyback program in more than six years following a particularly disappointing second-quarter earnings release. Share buybacks can be a great move, if they're done at the right price. The problem is, they're often done in a routine manner or, in even less desirable cases, as an attempt by management to placate rebelling shareholders in the face of mounting losses. Given that shares in the "Chinese Google" proceeded to slide over 30% in the wake of quarterly results, its share-repurchase program is suspect to say the least.
Is Baidu's management making an intelligent capital-allocation decision, or is this just another example of a company "returning capital to shareholders" in the absence of anything better to do? Be sure to click through the following slideshow to find out.
