Thursday, November 29, 2007

A Couple Stocks with Huge Buyback Programs

I just wanted to point readers to these two high quality companies that have initiated massive share buybacks.

1. Cisco (CSCO) – Cisco just increased the amount of their share buyback plan by $10 billion bringing their total buyback program up to $62 billion. With a market cap of 170 billion this buyback represents approximately 36% of their outstanding shares. In further support of the stock David Dreman, a respected and successful value investor has recently been a buyer.

2. American International Group (AIG) – AIG has been aggressively buying back it’s shares over the last year (69 million shares) and will be adding another $8 billion to it’s buyback plan. Supporters of the stock include famous investors Micheal Price and Bruce Kovner who both have positions in AIG.

In my opinion any company that is undertaking massive share buybacks are at least worth taking a look at, as it indicates that the management of the company believes that the shares are fundamentally undervalued and are willing to put their money where their mouth is.

19 comments:

Warren said...

I have read mixed reviews on buybacks, but the common-sense thinking to me is that these companies are making a healthy profit and don't see any decent R&D opportunities, so rather than spending blindly they are creating value for all shareholders.

Although I'm a little surprised to see a company like Cisco making big buybacks. JNJ also announced up to I believe $10b in buybacks a few months ago.

MG (moneygardener) said...

Home Depot also has a huge one. The shares are cheap for sure, but whether they are mispriced remains to be seen as the U.S housing mess could hurt them for years.

Anonymous said...

I don't hate buybacks but I'm not a huge fan of spending BILLIONS in a buyback program. Sometimes I think the buyback program is used soley to get bigger bonsues for management team by reaching stock increases that make thier options more valuable. I mean, yeah it helps all shareholders, but a dividend increase would be nice. Why not give a $10 billion dollar dividend? That would benefit the holders of stock right NOW.

S. B. said...

Hmmm...I think Cisco would be an unusual pick for Dreman's style. Worth looking into his rationale...

Anonymous said...

Great post. I was checking constantly this blog and I'm impressed! Very useful info specifically the last part :) I care for such info a lot. I was seeking this particular information for a very long time. Thank you and good luck.
Look into my blog post : Svetol

Anonymous said...

I take pleasure in, lead to I discovered just what I used
to be looking for. You've ended my 4 day lengthy hunt! God Bless you man. Have a great day. Bye
My webpage :: electronic cigarette wholesale

Anonymous said...

It is in reality a great and useful piece of info.

I'm happy that you just shared this useful info with us. Please stay us informed like this. Thank you for sharing.
Also visit my weblog :: coolest advertisements

Anonymous said...

I just couldn't leave your site prior to suggesting that I actually enjoyed the usual information a person provide to your visitors? Is going to be back often in order to inspect new posts
Also see my website :: lanautica

Anonymous said...

Wow, that's what I was looking for, what a stuff! present here at this weblog, thanks admin of this site.
My web site ; lanautica

Anonymous said...

Malaysia & Singapore & brunei finest on the internet blogshop for wholesale & quantity korean add-ons, accessories, earstuds, pendant, rings, hair,
bracelet & bangle add-ons. Promotion 35 % wholesale price cut. Ship Worldwide
Feel free to surf my web page ... ways to get ripped

Anonymous said...

Malaysia & Singapore & brunei best internet
blogshop for wholesale & quantity korean accessories, accessories,
earstuds, necklace, rings, bracelet, bracelet & hair
accessories. Deal 35 % wholesale markdown. Ship Worldwide
my site - hcg and ketones

Anonymous said...

I all the time used to study article in news papers but now as I am a
user of net thus from now I am using net for content, thanks to web.
My web blog :: great summer vacation

QUALITY STOCKS UNDER 5 DOLLARS said...

Remarkable

Anonymous said...

Hi there it's me, I am also visiting this web site regularly, this web page is truly good and the people are really sharing nice thoughts.

my blog; wii u rumors

Anonymous said...

I quite like reading an article that can make people think.

Also, many thanks for permitting me to comment!

Feel free to surf to my web blog ... you could try these out

Anonymous said...

Nice blog here! Also your site loads up fast! What web host are you using?
Can I get your affiliate link to your host? I wish my web site loaded up as fast as yours lol

My weblog: house music

Anonymous said...

I am sure this article has touched all the internet people, its
really really good piece of writing on building up new webpage.


Visit my webpage; sexygirlchat.net

Anonymous said...

Keep on writing, great job!

Feel free to surf to my page: www.xxxmoviegalls.com

Anonymous said...

I for all time emailed this webpage post
page to all my contacts, as if like to read it next my links
will too.

Also visit my web-site :: porn gay gratuit
:: ::