Quoting CFO Magazine: ======================================== In fact, many finance executives believe repurchase programs send a clear signal that a company's stock is undervalued. By scooping up outstanding scrip, they say a company is able to steady the nerves of jittery shareholders. What's more, a buyback reduces the supply of shares on the open market. That, buyback backers say, eventually drives the price of a company's stock up.
And in fact, a study conducted by Prudential Securities analyst Ed Keon would seem to bear this out. Keon looked at all the companies that conducted buybacks from 1984 through the second quarter of 2001. He found that corporations that reduced their outstanding shares by at least 1 percent generated greater annualized stock returns than the S&P 500 index. ==========================================
But, if you believe they are just words, you can wait about a week and see if there is any action taken. However, the covering price might not be as good as today when their market is closed.