UIC: United Industrial Buying Back Shares
From William Trent, CFA of Stock Market Beat Hot on the heels of a strong earnings report, Mid Cap Watch List member United Industrial Corporation (UIC) announced that its Board of Directors authorized a new $50 million stock repurchase plan.…
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From William Trent, CFA of Stock Market Beat
Hot on the heels of a strong earnings report, Mid Cap Watch List member United Industrial Corporation (UIC) announced that its Board of Directors authorized a new $50 million stock repurchase plan. The Board also authorized an additional $50 million of stock repurchases, for a total of up to $100 million, contingent on the company executing an amended or new credit facility of at least $200 million in capacity.
My take: Initially I was skeptical about the seriousness of this buyback, which would amount for a significant slug of the $625 million market capitalization even at the smaller $50 million plan. I figured the buyback would just be soaking up shares converted from the bond issue.
Then I looked at the annual report, and saw that the share count is already down nearly 15% from the 2003 peak. So now I’m thinking they are going the slow-motion self-LBO route. And I generally like companies that take that route.
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