There's always a lot of talk
about share repurchases, especially by value investors and dividend investors.
In looking at all sides of the argument
about share repurchases, one could say that companies that were repurchasing their own shares during the bull market of the 1990s looked smart as the value of their shares continued to go up, and foolish a decade later in the bear market of the 2000s as their shares declined in value.
We wish more managements thought
about share repurchases this way.
Not exact matches
By their very nature, forward - looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct and that our forward - looking statements, including statements
about the specific
share repurchase program forming part of the normal course issuer bid by Royal Bank of Canada, will not be achieved.
The hospital products maker, whose fourth - quarter profit beat analysts» expectations, said it would
repurchase about $ 500 million worth of
shares in the ongoing quarter.
«The reluctance to pull the trigger on
share repurchases suggests corporate leaders are becoming less enthusiastic
about what they see ahead.»
Companies executing
repurchases through Bank of America Corp. have bought
about $ 9 billion of
shares in 2016, the second - busiest start to a year since the bull market began in 2009, the bank said in a research note last week.
And then lastly, we feel great
about the amount of cash that this business continues to kick off, allowing us to reinvest in this low risk, high return new unit growth and the infrastructure to support it, while continuing to pay a competitive and over time, growing dividend, as well as consistent, robust
share repurchases.
As I wrote last year, the 500 largest U.S. companies
repurchased about a quarter of their equity's dollar value from 1998 to 2012, but the number of
shares outstanding actually grew more than 7 % over that same period.
The company is also targeting
about $ 2 billion worth of
share repurchases.
There are 330,000
shares remaining on the current
share repurchase program, which represents
about 3 % of the outstanding
shares.
Yeah, going back to that
about $ 1.75 cash you have on the balance sheet with the stock trade $ 0.80, and we're willing to buy back stock at $ 1.53, why will you not contemplate, and you have a 4 million
share repurchase authorized, why won't you engage in privately negotiated transactions, or a Dutch auction tender offer?
Over the past four years, Wal - Mart has
repurchased about 570 million
shares.
There is much debate
about whether companies should increase shareholder value by
repurchasing their
shares or returning excess cash to shareholders by way of dividends.
Shareholders of Wal - Mart can expect a return of
about 5 % from dividends and
share repurchases alone.
Coca Cola has already completed
about $ 1.5 billion worth of net
share repurchases this year, and has another $ 1 billion to $ 1.5 billion expected for the next two quarters.
The lower the
share price, the more AIG can
repurchase (they
repurchased about 1/2 of the offer in the last two Treasury sales) and thus the more accretive to book value.
If no
shares were
repurchased I'll infer that either they are contemplating an investment (and they better tell me
about it!)
Twenty companies announced a
share repurchase, either through the open market, or through more formalized programs such as Dutch Auction tender offers (see our M&A Insights: «What
About a Dutch Auction?»
But second, the Institutional Imperative's really
about empire building... [And God forbid,
share repurchases would shrink that empire!]
The company generated $ 13.5 billion in cash flow from operations and returned
about $ 21 billion in cash to shareholders through dividends and
share repurchases.