Sentences with phrase «buy back stock»

«It is just a much better risk - adjusted yield to buy back stock than in buying assets or development.»
It has been years since any retail REITs exercised options to buy back stock.
The capital raised can be redeployed to finance growth, buy back stock or pay off debt.
Those alternatives might mean monetizing one of its famed properties and using the proceeds to pay higher dividends or to buy back stock, Mathrani said.
Key man insurance provides the funds for the company to buy back the stock from the employee's estate.
ChevronTexaco used $ 2.5 billion of its profits to buy back stock.
If you borrow money to buy back stock, while holding on to your cash (which is effectively what Apple did), the cash effect on PE will be greater, because cash as a percentage of market capitalization will increase.
Companies that have high return on capital and don't have a very capital intensive business — our kind of companies — usually will have substantial free cash flows, which allows them to grow earnings organically, pay a dividend and buy back stock.
I do not advocate leveraging the company to buy back stock for two reasons: First, higher return comes with higher risk, thus possibly putting downward pressure on a company's P / E and offsetting any benefits from a share buyback.
After all, highly valued companies use their stock as currency to buy stocks with lesser valuations, and stocks with low valuations tend to buy back stock or increase dividends.
Good companies don't report earnings in excess of what shareholders obtain, and they don't buy back stock except when it is cheap.
Also, they buy back stock, which increases leverage.
Banks would not be able to pay bonuses, dividends, buy back stock until they were compliant.
It seems like there isn't that much advantage to corporate borrowing now — the arbitrage of borrowing to buy back stock seems thin, as does borrowing to buy up competitors.
Finally if Levy, in his heart of hearts, wanted to realize the share price appreciation and he / his compadres thought there was value, they'd simply buy back stock or sell assets — you were spot on.
In general, when companies buy back stock they dilute value for investors.
Aside from energy companies, willingness to invest in the business has been light, while willingness to buy back stock has been high.
At this point, it doesn't pay so well to borrow money and buy back stock.
If they buy back stock at levels that are too high, it does not increase the intrinsic value of the firm, though it might keep the price higher for a little while.
It's gotten quite common to buy back stock at very high prices that really don't do the shareholders any good at all.
Outerwall hasn't been liquidating itself through buybacks — instead it has leveraged the balance sheet by issuing large amounts of debt, using the proceeds to buy back stock, which has reduced the share count, but not the size of the balance sheet or the amount of capital employed.
Share buybacks are one way stockholders can cash in on an investment, but anyone considering selling their holdings should try to understand why a company is choosing to buy back stock and how that move may affect its future prospects.
Some managements buy back stock indiscriminately, not caring about the price at purchase.
Managements that buy back stock should have a firm handle on the value drivers, such that they only buy back stock at a discount to the firm's private market value.
For Behemoth companies they can decide to pay special dividends, buy back stock, or spin off or sell subsidiaries.
In its history, this company has not been one to buy back stock.
Based on that 5 - year forecast and IMS Health's tendency to buy back stock (and the reasonable price of that stock before the buyout rumor leaked) it seems likely that free cash flow per share would have grown by 10 % + annually if IMS Health had stayed a public company.
So, why did I say Frost doesn't buy back stock.
You're also very careful with the acquisitions that you make, you pay out dividends when warranted, and buy back stock when it's cheap.
In the meantime, FMD is likely to deploy its cash flows and debt - free balance sheet to buy back stock.
So, honestly, if U.S. Lime said «We're going to target a Net Debt / EBITDA level of 2 at all times and we're going to use all free cash flow beyond keeping leverage at that level to just buy back stock» - I'd feel totally differently about the stock.
This causes the thinly traded stock's price to trade up, forcing the short - seller to buy back stock at far higher prices than he had hoped, which sends the price of the stock higher still.
Here is a passage from the company's most recent 10 - K proving it does buy back stock:
Then there are the companies that took on debt to buy back stock.
That means that $ 0.43 on the dollar is spoken for, and the Shell Oil management team gets to use $ 0.57 of each dollar that the company makes in profit to buy back stock, pay down debt, or grow the company.
Unfortunately, we were restricted from buying back more stock when it was cheap — below tangible book value — and we did not get permission to buy back stock until it was selling at $ 45 a share.
Perpetual stock gives the company the right to buy back the stock at any time under specific terms defined in the prospectus.
We started following DRAD (see our post archive here) because it was an undervalued asset play with a plan to sell assets and buy back its stock.
Digirad Corporation (NASDAQ: DRAD) is a tiny undervalued asset play with a plan to sell assets and buy back its stock.
Analyze the use of cash flow by management, to avoid companies that invest or buy back their stock when it dilutes value, and purchase those that enhance value through intelligent buybacks and investment.
DRAD has also now started to buy back stock under its previously announced $ 2M stock repurchase plan.
Questions like this cut through the clutter of what you don't know, and allow you to estimate how much capital they will have available to increase dividends, buy back stock, or buy other strategic assets.
We've been following DRAD (see our post archive here) because it is an undervalued asset play with a plan to sell assets and buy back its stock.
But corporations buy back stock, pay dividends, get acquired for cash which reduces the amount of stock outstanding, and places more cash in the hands of investors.
They can buy back stock or pay off debt.
Companies can also opportunistically buy back stock, reducing shares outstanding.
Ugh, as a buyside insurance analyst, I often encouraged management teams to not buy back stock, but build up capital against contingencies.
He gives the classic case of why a management would buy back stock.
He's going to buy back stock.
In the short run, it pays to issue debt to buy back stock, but the additional debt eventually exacts its price — when the cycle turns, and the price of liquidity rises, the debts will still be there, and interest costs to refinance them will be considerably higher.
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