MONTREAL — Metro Inc. says it intends to buy back and cancel up to one million of its common shares in private agreements, at prices to be negotiated with the unidentified seller.
At recent market prices, the buyback could cost the company more than $60 million.
Metro shares closed Tuesday at about $66 but Metro says it expects to pay a discounted price.
Emerging markets risk an interest rate shock once the U.S. Federal Reserve and other Western authorities start to withdraw global liquidity, the World Bank has warned.
“There is the risk that the transition to higher rates occurs in an abrupt and disruptive fashion. In such a scenario, markets react pre-emptively, potentially trapping some participants in vulnerable positions that appeared manageable under low interest rates.”
Over a year ago we wrote "How The Fed's Visible Hand Is Forcing Corporate Cash Mismanagement" in which we explained that due to ZIRP, management teams are left with just two (very shareholder-friendly) capital allocation choices: stock buybacks and dividends, to the detriment of such much more long-term critical uses of funds as capital expenditures, and to a lesser extent M&A.
ByBrian Grosso:This is the first installment in a series of articles that will provide detailed analyses of companies that are serious about buying back stock and delivering value to shareholders. In this series, I will explain why I prefer buybacks to dividends and why buybacks are so effective for companies that also pay dividends.This first article will lay the groundwork: explaining what a buyback is and why it is such a great way to deliver value to shareholders.
By Stephen Rosenman:I love dividends. Those companies that have boosted their dividend year after year are especially highly prized - some are titled "dividend aristocrats" or "dividend champions" or "dividend contenders".They're great and they deserve accolades.
By Wall Street Titan:
In response to the decline of Apollo Commercial Real Estate Finance (ARI) shares, well below net asset value of $16.66, the company last week made the necessary move implementing a share repurchase program of up to $35,0000,000. The program is designed to provide the company with the ability to buy back its shares, in the open market, over a period of one year.
Dr. Duru submits: As Research In Motion’s stock (RIMM) plunged the last repurchase program underwater, I speculated that RIMM would initiate another share repurchase program if the stock continued to go lower.
By David Sterman
Many investors tend to ignore stock buyback announcements. Seemingly massive share repurchase programs become a lot less impressive when you realize they are mostly attempting to offset generous stock option grants for insiders by reducing growth in the share count. Adding insult, some buyback programs are put in place even as a stock is surging to multi-year highs.