This is why many view the initiation of a stock repurchase program as confirmation that a firm has no better or more productive use of their cash.
Isis Chief Executive Stanley Crooke says by doing the deal he is betting on a rise in Isis' stock price, because Isis can use a combination of cash and its stock to repurchase the rights to the drugs.
The stock repurchase program means Hecla is authorized to repurchase up to 20 million shares of its outstanding common stock from time to time, with the purchases expected to occur over the next 24 months, the company said.
For instance, Intel just recently issued non-convertible debt for the first time in nearly 25 years in order to repurchase stock and take advantage of the opportunity to capture value for shareholders.
The board of directors also restarted its stock repurchase program after suspending it last year due to the Minefinders acquisition bid.
We also believe that the stock repurchase program is in the best interest of our stockholders and demonstrates our commitment to increase stockholder value.
They must wait 30 days to repurchase the stock, however, if they want the flexibility of writing off a potential loss on the new position.
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Essentially, this is an example of an attractive investment area in an age of financial repression, as they continue to grow dividends and repurchase stock.
Comcast shares are trading sharply higher Wednesday on a combination of strong Q4 results, a big dividend hike and an aggressive new stock repurchase plan.
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Best Buy's strong results for the three months ended Aug. 28 were due to tight expense controls, increased sales of cellphones and services such as connecting televisions with home networks, and a stock repurchase program that reduced total shares outstanding.
If companies cannot repurchase stock, they can award shares to employees only by issuing new ones, which dilutes the stakes of existing shareholders.
Last fall Berkshire announced that if the per-share book value fell below 110% of the stock price (1.1x the stock price) the company would step in and repurchase shares.
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