DirecTV Completes Stock Repurchase Program

[whatchel1]

I don't know what it means but thought direct people would like to know:

[Satellite Today 01-13-09] DirecTV has completed a $3 billion stock repurchase program and its board approved the repurchase of up to an additional $2 billion of its common stock, the company announced Jan. 12.
DirecTV said additional purchases could be made from time to time through open market purchases or in negotiated transactions using available cash on hand and cash expected to be provided by operations. The timing and amount of such transactions depend on a variety of factors, including market conditions.
Since February 2006, DirecTV has repurchased about $8.2 billion of its common stock.

 

[charper1]

Its definitely NOT something to panic over; in fact, it can be a GREAT signal that we should look to be buying in. Company stock repurchases are almost always a GOOD THING!


After the company purchases its stock, the shares are then held as what's known as treasury stock.

By repurchasing stock, the company essentially reduces the number of shares outstanding.

Companies may choose to repurchase their stock for several reasons. One reason is that buying back some of the shares will boost the company's earnings per share.

When fewer shares are outstanding, earnings per share will rise because there are a smaller number of shares over which to distribute the earnings (profits).

A stock-repurchase plan can also signal that a company has excess cash available.

When a company chooses to use its excess cash to repurchase shares of its own stock, it may be because the company may think the shares are selling below a level that they're actually worth.

This sends a signal to investors that the company thinks its own stock is the best investment it could make. When the company buys back its own stock, it forgoes investing in other securities or making additional capital investments.

A stock-repurchase program also can be implemented to acquire shares for management and employee incentive plans, including stock options and stock-purchase plans, or for employer contributions to a 401(k) or other qualified retirement plan.

Many businesses that are expanding do so through mergers and acquisitions. Companies initiate stock-repurchase plans to build currency for acquisitions.

A company would increase its amount of treasury stock so that it could use those shares to acquire another company. For this reason, a stock-repurchase program could be considered a sign of growth.

A company announces stock-repurchase programs for a variety of reasons, such as funding employee retirement or to increase earnings per share.

Generally, company stock-repurchase plans are good news for investors in companies repurchasing their stock.

Stock repurchases can be a sign that a company is financially healthy. Thus a buyback program also often results in an increase in the price of the stock.

 

[CorpITGuy]

Yep. Murdoch must be crying.

 

[stonecold]

Why dont we all get it over with, and be the first time in 09 that we mention the world merger. DTV buying up there stock for the always pending for the last 10 years merger. Every year we go though of this is the year dish and direct are going to merge. So lets just get it out of the way and have the first bs merger posting.

 

[CorpITGuy]

Geez, stonecold. Just because people weren't right about it in the past doesn't mean it won't happen. I tend to think that the Justice Department and the FTC might not approve the merger at all, but it's got to be something DirecTV is thinking about.

 

[Tam]

So who is suppose to buying who?

 

[charper1]

So who is suppose to buying who?

DirecTV buying out Dish

 

[stonecold]

Yeah after all these years there was only one credable time when there was going to be a merger and the ftc knock it right now. Dish was to buy D* and they have prototype dish on display at the time that pointed at both services satellites.



From the 02 Team Summit Picture by Dishretailer.com