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Tickers in this Article: ADBE, KR, MKC, RIMM, SVU, C.RIM
Recently announced share repurchase plans show a couple companies willing to pay the going rate for its common shares, but whether that happens is a different story. New announcements include cell phone companies and software corporations as well as a retail food chain.

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These announcements either add to the prior plan, or could replace the previous plan all together. Management's intentions are tough to predict, but essentially the company might decide that investing in itself is the best use of its funds. (Buying back shares can be a sensible way for companies to use extra cash. But in many cases, it's just a ploy to boost earnings, read 6 Bad Stock Buyback Scenarios.)

Repurchase Amount
Date Announced
Market Cap
Adobe Systems (Nasdaq:ADBE)
$1.6 billion
June 22
Kroger Co. (NYSE:KR)
$500 million
June 24
McCormick & Co. Inc. (NYSE:MKC)
$400 million
June 22
Research In Motion (NYSE:RIMM)
31 million shares
June 24
Supervalu Inc. (NYSE:SVU)
$70 million
June 22
Blackberry Buyback
Research In Motion (Nasdaq:RIMM, TSX:RIM) announced its first-quarter results for the period ending May 29, 2010 with higher revenues, higher profit and future buybacks. The repurchase program approves a 31 million common share buyback for cancellation. The plan to repurchase shares might not happen at all, but RIM has repurchased 18.2 million shares since November of 2009 at an approximate cost of $1.2 billion.

Revenues were $4.2 billion for the first quarter, about 24% higher than 2009 revenues of $3.4 billion in the same quarter. Cash is coming in to pay for these shares and net income was $769 million, compared to $643 million in the same quarter a year earlier.

No Flash Here
Apple's (Nasdaq:AAPL) iPhone 4 is going to be major competition in the coming months, on June 28, Apple announced it had sold 1.7 million sets in three days since the June 24 launch. An amazing feat and phone but if you are looking for Adobe Flash you will have to look elsewhere. (Find out what these company programs achieve and what it means for stockholders, see A Breakdown Of Stock Buybacks.)

Adobe Systems (Nasdaq:ADBE) announced on June 22 that it has authorized $1.6 billion in buybacks. Hot on the heels of an 18% increase in quarterly profit, the company also announced it has entered into structured agreements with third party institutions to repurchase $400 million shares. This represents 25% of the $1.6 billion plan. Adobe and Apple will always have a great relationship for creative individuals with artistic needs. In a time when Apple doubts some of Adobe's products, Adobe feels quite comfortable investing in its self.

The Bottom Line
In a less stable investing environment, there will always be opportunities to grab undervalued stocks. By approving repurchases these companies are getting ready to take advantage of favorable prices in its own shares. Whether this is the best use capital will be tough to judge. Looking at the alternative opportunities for companies, and especially the risks in other investments, buybacks could create the most value for current shareholders.

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