Buyback - I'm not crazy about it. A better suggestion....
Why the buyback now? The company has the earnings base to support the number of shares outstanding. Better to either keep the money for a rainy day. Better yet institute a dividend, and draw in more investors interested in that kind of component & make the shorts pay the dividend due to the holder.
I like share buybacks too, but not when they have done numerous ones and they still have 35% more shares outstanding than they did 8 years ago. It's a blatant waste of money as they just print more Options (shares) later on.
When a company says the best use of their money is to buy back their own stock and to borrow to do it, then they are stuck in a rut and cannot innovate or don't trust themselves to build market share. Warren Buffett more or less says the same thing.
They have once again lost out on a potentialy enourmous pool of money from Funds who can only invest in dividend paying stocks....what a shame.
p.s. I have seen no "end date" for the $100 million share buyback, as the other 2 had, thus that part could be all smoke and mirrors to drive up price to help with Freedom purchase.
DIVIDEND!!! They need to reduce the number of shares to pay a meaningful dividend. Would you rather pay 3% of share price on 55 million shares or 20 million shares? Failing to meet 3% will be just as negative as not paying one at all. Longs shall be rewarded handsomely as share count shrinks and the dividend becomes initiated. If shares outstanding gets to or below 25 million with an initiated dividend, we may be looking at 30.00 or more. Where is dat? Debt issuance and share buyback...not even close to an SPO. This thing is going to fly.
Shares have grown to almost double over the past 10 years.
Please look at outstanding shares of past years.
They always grow as theyretire old ones, they just issue new ones in form of INSIDER Options.
Don't forget they have to pay for the stock and will have less cash on hand. In the meanwhile the company currently is operating at near maximum capacity. They have to keep some funds available for capital expenditures if they want to grow. The dividend will bring in new funds that can only buy dividend paying stocks, and cost less than a buyback. It also might bring back some representation of the pension funds we lost because of Newtown.