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Tessera Technologies Inc. Message Board

  • gnik4luap gnik4luap Sep 29, 2011 9:18 PM Flag

    Stock Buy Back Math

    TSRA had $520 million in cash at the end of last Quarter, with less than $40 million in total liabilities.

    If they spent all their cash to buy back shares, using a $15 average price, revenues, profits and remaining VALUE of the existing shares would EXPLODE HIGHER.

    They could reduce the number of shares outstanding from 51 million to 19 million with the $500 million in cash EARNING nothing on the balance sheet.

    Revenues per share would rise from $6 to $16 per share, EPS would rise from $1.00 to $2.60! "Free" cash flow would rise from $1.20 per share to $3.30 per share for remaining stake owners in the company.

    Buying shares back at $12 or $13 WOULD BE AN EVEN BIGGER BONANZA for existing owners. I am sure plenty of competitors and semiconductor corporations would love to add TSRA assets and customers and profits, with the stock priced barely above its EXISTING cash in the bank.

    SHARKS ARE PROWLING NO DOUBT!

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    • I like the stock as well, but you didn't reference the recent pre-announcement that revenues will be down to about $60 mill and legal expenses would be up. Profit not mentioned as far as I read. If short term problem, fine, but your profits per share assume profitability while the industry keeps disappointing at least for this qtr.

      my views, good luck all longs

 
TSRA
22.19+0.16(+0.73%)Apr 17 4:00 PMEDT

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