HP's Wager on the Future
When a company is so aggressive in repurchasing its
stock, it is usually a sign that management has great prospects on the horizon
and wants the company and its senior shareholders to reap the majority of the
benefit. By repurchasing stock, the company may reduce its cash balance,
but it can dramatically increase its earnings per share. The reason: As the
number of shares outstanding is reduced, net income is spread out over fewer
shares.
Posted: Mon - August 29, 2005 at 03:47 PM