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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.


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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

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