POT $2B Stock Repurchase Program starts on AUGUST 2nd
They will start the $2B repurchase program on AUG 2, 2013 which is in 2 days. Read the following news which just came out minutes ago:
"- Potash confirms $2B share repurchase program
Potash Corporation of Saskatchewan announced that the Toronto Stock Exchange has approved PotashCorp's previously announced share repurchase program to purchase for cancellation up to 43,345,992 common shares, representing 5% of its outstanding common shares, over a one-year period through a normal course issuer bid subject to a maximum aggregate amount of US$2B. Repurchases under the program may commence on August 2 and will terminate not later than August 1, 2014. There were 866,919,856 common shares outstanding as at July 30. Common shares repurchased under the program will be cancelled."
Based on the current prices, they will be able to buy even more shares than they anticipated before. I guess 60 million shares will be more accurate. This is GREAT NEWS for the shareholders as over 5% of shares will be taken out of the market and will increase the value of remaining shares.
Do your own due diligence, but this is a no brainer, and do not forget the almost 4% dividend you will get while you hold your shares.
Companies often do this #$%$ right after bad news. Always trying to throw bone to the shareholders to keep them sucked in. The money comes from somewhere. And it may or may not be good thing. Is increasing the debt or reducing the dividend to pay this a good thing? Or maybe they're trying to tell us they think the stock is undervalued.
The text you quote indicates the number of shares to be repurchased and the maximum amount of cash to be used to make the purchases. Your statement, therefore, that based on current prices, POT will be able to repurchase a greater number of shares is in error. POT will repurchase 5% of its outstanding shares and that is all they will repurchase under the program. Based on current prices, the repurchase will likely require less money to be expended to accomplish the task but that is about it. It would require an additional announcement if POT intended to repurchase more than 5% of its outstanding stock.