Dell's $10 billion share buyback - It's an all out Buy

Submitted by Eric Cheshier on Tue, 12/04/2007 - 20:16

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Financial News

Dell Inc. (NASDAQ:DELL) missed revenue by 1 cent, last week and the market responded by dropping shares 15%. Now Dell is buying back shares like nobody's business to the tune of $10 billion. Fellow Masters, it's an All Out Buy, 1-2-shabadoo style.

Last week we wrote - Dell (DELL) missed by one penny, relax.

After Dell's shares fell the hardest in 7 years they are putting their money on the line for shareholders. Dell Inc. (DELL)

Dell, the world's second-largest personal computer maker said Tuesday it would re-start its stock buyback plan in a big way, having authorized $10 billion to repurchase shares.

DELL made the announcement as part of its annual shareholders' meeting at the company's headquarters in Round Rock, Tex. It marks the first time Dell has authorized funds to buy back the company's stock since giving approval to a similar $10 billion plan in March 2005.

The company had suspended stock buybacks in August until it finished filing a series of delayed quarterly reports with the Securities and Exchange Commission. Those filings resulted in Dell reducing its earnings by $92 million for the fiscal years of 2003 to 2006.

BMO Securities analyst Keith Bachman said the buyback "should be perceived to be good news," and that he expects Dell to be aggressive in repurchasing its stock, given its current share price of around $24.

Fellow Masters, this is an easy ride back to $28 in the next two months, time to get on board.

Article written by Eric Cheshier

Co-Founder of theStockMasters.com

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