Read all about it here:
Orbital Sciences Corporation (NYSE:ORB - News) today announced that its Board of Directors has authorized the company to repurchase up to $50 million of its common stock over a 12-month period beginning immediately. The new stock repurchase authorization will overlap with a previous $50 million authorization that expires on May 2, 2009. Orbital currently has approximately $3 million remaining under that plan.
“The Board’s authorization for another $50 million in common stock repurchases continues to demonstrate Orbital’s commitment to long-term shareholder value growth and reflects management’s view that the company’s future business prospects are solid,” said Mr. David W. Thompson, Chairman and Chief Executive Officer. “With our contract backlog at an all-time high, strong opportunities in most of our markets, and a balance sheet that affords us great flexibility, we believe the deployment of capital in the form of share repurchases is a smart move for our shareholders.”
Excellent move, especially considering the stock is lower than whale feces and thus ultra-cheap.
Guys, I have 4 doz. fresh Wellfleet oysters in my garage refrigerator that I gathered last wk on the flats near my house. Good on the half shell with lemon juice and maybe a drop or two of Frank's Hot Sauce. Wash down with cold chardonnay. (Maybe two glasses of wine while ORB continues to dig lower.)
With clam chowder, my wife prefers red (Manhattan style) while I prefer white (NE stylle). I use large quahogs for chowder. The small ones are fine in the shell over linguine. No recipes from me, wife does the cooking.
Sea clams (for clam pies) in spring & fall; softshell steamer clams (steamed & dipped in broth & melted butter) in the summer. Razor clams are very hard to find anymore and a closely kept secret among the locals. Blue mussels and sea scallops: buy at the market.
I try to use the same approach to stocks ...look where no one else is looking and dig down for the good ones. Go ORB!
He does indeed dig clams such as they are on the east coast. But just chop up some razor clams from the west coast, give them a quick stir fry and set them aside. Crisp up bacon, cut up some potatoes in small cubes, pop in a bit of onion and put all the ingredients into a kettle of whole milk with some half and half and let it simmer until done and somewhat thickened. Pour into a bowl, add a nice dollop of real butter, salt and pepper to taste and enjoy. It is not hard.
There is general Wall St. wisdom that cheap stocks are that way for a reason (usually bad). Also exchanges and S&P have delisting rules when stocks get too low. GM, Citi are examples.
You can buy canadian mining stocks for pennies per share (not me).
<<If you are referring to the arbitrary $5 lower limit on mutual fund purchases, it is not an SEC rule but it is a fund by fund by-law or investment policy rule that many funds adopt out of prudence. Check the Prospectus of a couple of your funds.>>
my question was, why is this regarded as prudent.
If you are referring to the arbitrary $5 lower limit on mutual fund purchases, it is not an SEC rule but it is a fund by fund by-law or investment policy rule that many funds adopt out of prudence. Check the Prospectus of a couple of your funds.
If you refer to my rant against buybacks and splits, it is my opinion that it is mainly financial manipulation with little impact on serious investors (institutions) who focus instead on operating performance (earnings, cash flow, contract wins and backlog). Buybacks are often justified as controlling outstanding shares in the face of management stock awards (dilution). Sure, you can goose EPS by a few cents with buybacks. Better to sit on the cash or pay down debt IMO. Cash is King.
Time will tell what the current admin does to the defense budget ...and maybe ORB will stay in the sweet spot. PE has come down alot. Maybe time to back up the truck again? May miss out on a pop if wait until NASA decides COT challenge. GLTA
A split would be about the dumbest idea right now. Even share repurchases has to be questioned vis a vis debt paydowns. I doubt if they will make any repurchases, tis just for the PR.
I think ORB has suffered from multiple contraction in reaction to the activist lefty crowd in DC and Nobamba administration. Too bad. Good thing we have a strong backlog. Buy some more shares here and ride the next rocket back up.