Listening to Simon Property Group (NYSE: SPG) Chief Executive Officer David Simon is entertaining and informative. He doesn't mince words and tends to be frank, bringing explanations down to a level that is simple enough for industry outsiders to understand. So when he said, during Simon's second-quarter earnings conference call, that the real estate investment trust's (REIT's) stock was "ridiculously cheap," he was making a material statement. Here's why you should listen.

Much too often companies buy back their own shares when prices are high. There are factors, such as offsetting the dilution from stock option-based compensation, that help to drive this pattern. However, the vast majority of the time companies do buybacks when they are doing well, which is also when companies tend to have the most extra cash for share repurchases. It's usually not a great thing for investors when a company buys high.

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Source Fool.com