Feeds

Compaq plans $1bn purchase of own stock

Taking advantage of depressed share price

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Compaq wants to buy back $1 billion worth of shares, taking advantage of the dip in tech stocks and bolstering the company against expectations of poor PC sales during the current financial quarter.

Compaq's announcement won approval on Wall Street, pushing up tech stocks in general - Nasdaq gained 1.8 per cent.

"At current price levels, we believe Compaq's stock offers a tremendous investment opportunity for the company," said Compaq boss Michael Capellas. As and when hi-tech stock prices recover, Compaq can sell again and cash in. If not, it takes shares out of circulation, which can increase the value of those that remain in the market. Earnings per share will increase too.

Compaq isn't going to splash out - instead, it will buy shares back in smaller units, taking advantage of market conditions. And if that pushes the price up - as it may well do; there's nothing like clear demand to boost prices - then that's good for Compaq too. ®

Beginner's guide to SSL certificates

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.