Posts related to ‘Stock Buybacks’

Tech Giants Now Hold ~$265 Billion Cash To Spend (HPQ, COMS, INTC, AMD, MSFT, CSCO, AAPL, GOOG, ORCL, JAVA, QCOM, EMC, YHOO, DELL, AMZN, EBAY, ONT, BRCD, JDSU, STAR, VMW)

You have already seen the Hewlett-Packard (NYSE: HPQ) buyout of 3Com Corporation (NASDAQ: COMS).  But this week before that deal was announced we covered how mergers in the technology sector have been very slow to develop over the scale in which we and others think is possible for the sector.  After the Intel Corporation (NASDAQ: INTC) settlement with Advanced Micro Devices (NYSE: AMD), the tally of cash that is now estimated would be an implied $265 billion that is available for the tech giants in our 24/7 Wall St. Real-Time 500 to make acquisitions.

The giant cash balances are held by Microsoft Corporation (NASDAQ: MSFT), Cisco Systems Inc. (NASDAQ: CSCO), Apple Inc. (NASDAQ: AAPL), Google Inc. (NASDAQ: GOOG), and Oracle Corp. (NASDAQ: ORCL), assuming nothing happens with Sun Microsystems Inc. (NASDAQ: JAVA).  But players like QUALCOMM Inc. (NASDAQ: QCOM), EMC Corporation (NYSE: EMC), International Business Machines (NYSE: IBM), Dell Inc. (NASDAQ: DELL), Yahoo! Inc. (NASDAQ: YHOO), Amazon.com Inc. (NASDAQ: AMZN), and eBay Inc. (NASDAQ: EBAY) are either all sitting with large amounts of cash or will be very soon.

We have broken out these technology, IT, software, and Internet companies by the cash amount they hold or what they have in a soon-to-be cash balance.  Of course only a fraction of this cash will be used for mergers.  But there is also a ton of room here for dividends and of course the share buybacks.

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Posted on: November 12, 2009 – 11:31 am in Consumer Electronics, Cramer, Dividend, Editor's Picks, Internet, Large Cap Stocks, Mergers and Buy Outs, PC Companies, Private Equity, Rumors, Semiconductor, Software, Stock Buybacks, Technology Companies, Telecom, , , , , , , , , , , , , , , , , , , ,

52-Week High Club

Chipotle Mexican Grill (NYSE: CMG) hit a yearly high of $97.33 as options traders place bets in anticipation of positive earnings.

Dr Pepper Snapple Group (NYSE: DPS) hit a yearly high of $28.58 as Citigroup gives the company a buy rating in anticipation of the declaration of a dividend or stock buy backs in 2010.

Mead Johnson Nutrition Company (NYSE: MJN) hit a yearly high of $43.68 as rumors of a takeover circulated.  The shares promptly dropped as the rumored purchaser, Danone SA, denied the reports.

Thor Industries (NYSE: THO) hit a yearly high of $30.64 as it reported that its 4Q profits had quadrupled.  

Valassis Communications (NYSE: VCI) hit a yearly high of $25.25, boosted by positive news coming out of Gannett.

Walgreen Company (NYSE: WAG) hit a yearly high of $37.53 after the company’s earnings beat analysts estimates.

Garrett W. McIntyre

Posted on: September 29, 2009 – 4:12 pm in Analyst Calls, Dividend, Food, Media, Mergers and Buy Outs, Stock Buybacks, Transports, , , , , ,

M&A: America’s Top Companies Hold $335 Billion Cash (XOM, MSFT, JNJ, PG, BRK-A, IBM, T, AAPL, GOOG, CVX, CSCO, KO, INTC, ORCL, BAC, WFC, JPM, GE, PFE)

Money Stack ImageNow that we are out of the woods in the crash scenario, assuming this week is no ill omen, investors may want to know which of the big companies would start to deploy their billions and billions of dollars in cash for large mergers or strategic bolt-on acquisitions. In all of these companies, we are not taking the long-term or short-term debt obligations into account.  This is merely the cash, cash equivalents, and the long-term investments listed on the books.

But as these are the biggest companies in the world with what should be credible balance sheets (in most cases anyhow), we are also including a second combined figure for “receivables and inventories” for a few of these companies to show what the firms could use for additional sources of capital…. These figures do not include untapped credit lines and shelf registrations which could amount to untold billions more.  Because of this calculation, our figures may differ slightly from what companies have listed  as cash and equivalents.

Can all of this cash go for mergers?  What about for dividends?  No way.  But a large portion of it could be used for mergers and buyouts under the right circumstances.  We removed the companies which are either permanently out of the game of M&A or those which are temporarily out of it.  But of the fourteen mega-caps (over $100 billion in market cap) which we did cover, you would be shocked at the cash balance these companies are sitting on without even considering the total cumulative effect of credit lines, inventories, receivables, and open shelf registrations.  The first total cash figure comes to a whopping $335 billion.  This number is far more if you count the companies with exceptions.

These major companies broken down by cash balance and what sort of merger these could consider are Exxon Mobil Corp. (NYSE: XOM), Microsoft Corporation (NASDAQ: MSFT), Johnson & Johnson (NYSE: JNJ), Procter & Gamble Co. (NYSE: PG), Berkshire Hathaway Inc. (NYSE: BRK-A), International Business Machines (NYSE: IBM), AT&T Inc. (NYSE: T), Apple Inc. (NASDAQ: AAPL), Google Inc. (NASDAQ: GOOG), Chevron Corporation (NYSE: CVX), Cisco Systems Inc. (NASDAQ: CSCO), Intel Corp. (NASDAQ: INTC), Oracle Corp. (NASDAQ: ORCL).  Even after a huge rally, $335 billion and then some could go a very long way.
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Posted on: September 2, 2009 – 5:05 pm in Buffett, Conglomerates, Dividend, Editor's Picks, Large Cap Stocks, Mergers and Buy Outs, Oil & Gas, Private Equity, Rumors, Stock Buybacks, Technology Companies, Value Investing, , , , , , , , , , , , , , , , , , ,

Wal-Mart’s Mother of All Buybacks (WMT)

WalMart LogoWal-Mart Stores Inc. (NYSE: WMT) gave shareholders a surprise at this morning’s annual shareholder meeting.  The retail giant announced that it was going to repurchase up to $15 billion worth of common stock.
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Posted on: June 5, 2009 – 9:57 am in Consumer Goods, Dividend, Retail, Stock Buybacks,

Major Companies Realize Futility of Stock Buybacks (MO, MMM, T, EK, T, PHG)

Burning_money_pic_3More and more companies are either suspending or killing their share repurchases and stock buyback plans.  Some are doing it to conserve cash in a much harder operating environment.  But many companies have figured out that shrinking their floats by a marginal amount does little to support their stocks.  We have given some detailed data below on the "no more buybacks" status of Altria Group Inc. (NYSE: MO),  3M Co. (NYSE: MMM), Eastman Kodak Company (NYSE: EK), AT&T, Inc. (NYSE: T), and Royal Philips Electronics (NYSE: PHG).

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Posted on: January 29, 2009 – 11:05 am in Labor & Unions, Shareholder Issues, Stock Buybacks, , , , ,

Nortel Signals One More Reverse Split After NYSE Listing Notice (NT)

Burning_money_pic_3Nortel Networks Corporation (NYSE: NT) is going to be back at the stock game again.  The troubled Canadian telecom equipment provider announced today that it was notified today by New York Stock Exchange that its stock is below the $1.00 price criteria listing standard on the NYSE.  If you have been following this, you will see below how this situation seems to just get worse and worse.

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Posted on: December 11, 2008 – 2:05 pm in Management Change, Shareholder Issues, Stock Buybacks, Telecom,

Apple and a Monster Stock Buyback (AAPL)

Applelogo1Apple Inc. (NASDAQ: AAPL) is doing well today on word that the company "may" do a share buyback.  This comes after a Bernstein report from this morning titled "Apple: Time for a Buyback?" from analyst Toni Sacconaghi, Jr.

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Posted on: October 29, 2008 – 11:15 am in Consumer Electronics, PC Companies, Stock Buybacks, Technology Companies,

ATP: Buybacks, Sales & The Future (ATPG, APC)

Oil_rig_offshore_atpg_imageATP Oil & Gas (NASDAQ:ATPG) is a small-cap E&P company that is desperately trying to improveits share price. It is trading today about 85% lower than its 52-week high.That stinks and the company knows it.  This morning, the company announced a plan to buy back 3.5 million shares, or about 10% of shares outstanding, and it is taking on more shareholder-friendly initiatives.

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Posted on: October 28, 2008 – 11:58 am in Oil & Gas, Shareholder Issues, Stock Buybacks, ,

H-P Jumps In On Buybacks (HPQ)

Hp_logoHewlett-Packard Co. (NYSE: HPQ) has decided to jump in on the stock buyback bandwagon.  Its new share buyback program is for $8 billion in common stock.  At current prices, this would represent over 165 million shares of its current and approximately 2.5 billion outstanding shares.  This buyback is not a complete chopping off of existing shares to shrink the existing float.  The company says that it intends to use this additional plan as part of an ongoing program to manage dilution created by shares issued under its employee stock plans and to repurchase shares opportunistically.  It says it bought back $1.6 billion of stock in Q3 and had about $3 billion under its existing $8 billion plan approved in November 2007.

Jon C. Ogg
September 22, 2008

Posted on: September 22, 2008 – 8:20 am in PC Companies, Stock Buybacks, Technology Companies,

Nike on Buybacks: Just Do It (NKE)

Nike_logoNike Inc. (NYSE: NKE) has decided to jump on the stock buyback bandwagon this morning.  The footwear and sports apparel and equipment maker has just announced it would repurchase up to $5 billion in common stock over the next four years.  This plan will begin upon the completion of its existing $3 billion share buyback plan.  Nike has repurchased roughly $5.5 billion in stock over the last 10 years.

Nike shares are up over 2% pre-market at $65.20.  Its 52-week trading range is $51.50 to $70.60. 

Jon C. Ogg
September 22, 2008

Posted on: September 22, 2008 – 8:08 am in Apparel, Stock Buybacks,

Microsoft’s $40 Billion Stock Buyback (MSFT)

Microsoft_logo_3Microsoft Corp. (NASDAQ: MSFT) is announcing another monster share buyback plan. This one gives it the authorization to repurchase as much as $40 billion worth of stock.  Its last buyback plan has been completed.  This new one is through September 30, 2013.

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Posted on: September 22, 2008 – 7:47 am in Software, Stock Buybacks,

Day Trader Alert: Shanda Interactive Entertainment Ltd. (SNDA)

Shanda_logoShanda Interactive Entertainment Ltd. (NASDAQ: SNDA) is seeing an exponential volume surge at the open.  The Chinese interactive gaming software company has now seen more than 3.4 million shares trade hands and shares are up almost 1% at $28.22.  Shanda’s average daily volume is about 900,000 shares and today’s volume surpassed its post-earnings rally of 3.17 million shares.

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Posted on: September 10, 2008 – 8:47 am in Secondary Offering, Stock Buybacks, Video Games,

Michael Dell Buying More Stock (DELL)

Dell_logoThere is some more insider buying going on over at Dell Inc. (NASDAQ: DELL).  Chairman, CEO, and founder Michael Dell has just last week added to his position in open market stock purchases.  In an SEC filing today, he said he purchased 3.5 million shares at an average price of $20.4214 on September 4 and another 1.378 million shares at an average of $20.6705 on September 5.  Total it all up and you are right at another $100 million of common stock.  Last time Michael Dell bought $100 million, shares rallied.  Tonight they are up about 2% in after-hours trading from the $20.17 close.

Jon C. Ogg
September 8, 2008

Posted on: September 8, 2008 – 3:20 pm in Insider Activity, PC Companies, Stock Buybacks,

Anadarko’s Buyback Ambitions Go Massive (APC)

Oil_well_logo_2_2Anadarko Petroleum Corporation (NYSE: APC) has authorized a rather large stock buyback plan, and it appears to be onbe of the larger buybacks we have seen in the sector on a relative basis and nominal basis alike.  The company will spend up to $5 billion buying back stock out to August 2011 in a new plan that replaces existing plans.  To put this in perspective with current prices, this represents approximately 18% of its outstanding common shares.  The company said that it intends to repurchase approximately $600 million worth of shares prior to year-end 2008 and the share repurchases will be funded from free cash flow generated from operations.

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Posted on: August 25, 2008 – 4:49 pm in Oil & Gas, Stock Buybacks,

Coach Investing Substantially In Its Own Stock (COH)

Coach_logoCoach, Inc. (NYSE: COH) has just authorized a new share buyback program for the repurchase of up to $1 billion of its outstanding common stock.  The plan is set to expire on June 26, 2010.  Coach has just completed its current $1 billion repurchase program, which was just put into place in November 2007. It repurchased a total of 31.8 million shares of its own common stock under that program at an average cost of $31.42 per share.  That amount does include a total of 5.7 million shares at an average cost of $28.45 since it announced its fourth quarter earnings last month.

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Posted on: August 25, 2008 – 3:44 pm in Apparel, Stock Buybacks,

Starbucks (SBUX) Chases The Economy Towards Its Bottom

StarbucksStarbucks (SBUX) posted its first loss as a public company but gave investors something to hang on to. It reaffirmed that it will do better in fiscal 2009. To do that the company has to assume that a series of expense cuts coupled with better sales will cause a rebound in earnings.

Not likely.

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Posted on: July 31, 2008 – 4:35 am in Stock Buybacks,

Baker Hughes Unleashing Cash (BHI)

Baker Hughes Incorporated (NYSE: BHI) has decided to release some of its cash as a reward for its shareholders.    The company has just jacked up its dividend to $0.15 per share, up about 15% from the previous $0.13 per share dividend.  The company has also announced that it will  repurchase up to $1 billion of the company’s common stock in addition to the existing stock repurchase plan which will now have approximately $1.246 billion remaining. 

For a comparison on what this looks like, the stock yield based upon today’s prices is roughly 0.7%.  As far as comparing the share buyback, its market cap is just north of $25 Billion. 

Shares are down only about 0.3% today immediately before the close.

Jon C. Ogg
July 24, 2008

Posted on: July 24, 2008 – 3:01 pm in Dividend, Oil & Gas, Stock Buybacks,

Bank of America Jams on Buyback and Dividend (BAC)

Bank_of_america_logoBank of America Corporation (NYSE: BAC) just made key announcements regarding the dividend and the share buyback plans.  It has just announced that it declared a regular quarterly dividend on common stock of $0.64 per share.  So Ken Lewis meant what he said by announcing that he didn’t see the need to cut the dividend.

Perhaps even more important is thee size of its new buyback plan for common stock.  The financial giant has authorized a new buyback plan of up to 75 million shares of its common stock, which takes the plan up to $3.75 billion which is good for the next 12 to 18 months.  This new buyback plan replaces the expiring January 2007 repurchase authorization of 200 million shares.

Jon C. Ogg
July 23, 2008

Posted on: July 23, 2008 – 12:52 pm in Banking, Dividend, Financial Stocks, Stock Buybacks,

Tyco Doubles Down on Buybacks (TYC)

Tyco International Ltd. (NYSE: TYC) has decided to re-join the stock buyback regime seen elsewhere now that it has been a year since its break-up.  The company has announced that its Board of Directors has authorized a new share buyback program to repurchase up to $1 Billion of the company’s common stock.

The company expects to repurchase shares from time to time based on market conditions. This new buyback program is in addition to the existing $1 Billion buyback program that was authorized in September 2007.  That existing plan is nearing completion.

Tyco has also noted that up to this point in fiscal 2008, it has repurchased approximately 4% of its outstanding shares of common stock.  As far as the size of this buyout and how it compares to the company overall, it is a decent sized buyback.  Tyco had 2007 revenues of more than $18 Billion and its market cap is about $18.7 Billion.

Shares are actually up 5% this morning at $40.86 and its 52-week trading range is $31.01 to $51.89.

Jon C. Ogg
July 10, 2008

Posted on: July 10, 2008 – 8:16 am in Conglomerates, Stock Buybacks,

Fiserv Sells Insurance Ops, To Shrink Float (FISV)

Fiserv Inc. (NASDAQ: FISV) has announced a rather interesting move, and interestingly enough all that will be accomplished on the surface is a direct shrinkage of the company.

The company has announced that it will sell a majority interest in insurance business operations to Trident IV, a private equity fund managed by Stone Point Capital LLC.  You can take that it gave that operation an implied new value of $1 Billion, because the company will receive a $510 million payment as net proceeds for a 51% stake. The equity valuation would be lower though, as it lists the proceeds being $205 million in equity and $335 million in debt.  Fiserv noted that this will free up capital and will allow it to focus on financial products.

Simultaneously, the company has announced that it will turn around and repurchase up to 10 million shares of common stock in a repurchase program of roughly 6% of its float.  Based upon yesterday’s close that would be $453 million if it used the entire sum at that fixed theoretical price. 

The company has said this action will dilute earnings in 2008 by $0.02 to $0.03 and it is backing GAAP EPS of $3.28 and non-GAAP EPS of $3.40.  First Call has estimates as $3.34 EPS on a non-GAAP basis.

Its 52-week trading range is $44.16 to $58.32.  Shares are indicated higher by roughly $1.00 in pre-market trading, although there are no shares that have yet traded hands.

Jon C. Ogg
July 2, 2008

Posted on: July 2, 2008 – 7:44 am in Financial Stocks, Mergers and Buy Outs, Stock Buybacks,