InterDigital Inc (IDCC)

[nokiashill]

Stock buyback programs take advantage of supply and demand by reducing the number of shares outstanding, increasing EPS shareholder value, float and ultimately the price of stock. In addition, they are often a wise use of excess cash and can create tax opportunities for the investor. However, not all buybacks are actually implemented so caution and research is advisable., investors would do well to remember that share buybacks often involve a sort of negative signalling about business prospects. The implicit message is that companies lack a pipeline of projects that offer interesting returns on investment and, therefore, there are no fundamental factors that might drive earnings higher.some companies, particularly in the technology realm, have got into the unhealthy habit of granting stock options to staff and then buying back shares to offset that issuance.