I'm sure you have read this, but it is worth repeating....
Warren Buffet on buy backs:
When management repurchases stock, Buffett feels that the reward is twofold. If the stock is selling below its intrinsic value, then purchasing shares makes good business sense. If a company's stock price is $50 and its intrinsic value is $100, then each time management buys the stock, they are acquiring $2 of intrinsic value for every $1 spent. Transactions of this nature can be very profitable for the remaining shareholders.
Furthermore, Buffet says, when management actively buys the company's stock in the market, they are demonstrating that they have the best interests of their owners at hand, rather than a careless need to expand the corporate structure. That kind of stance sends good signals to the market, attracting other investors looking for a well-managed company that increases shareholders' wealth. Frequently, shareholders are rewarded twice - once from the initial open market purchase and then subsequently as investor interest has a positive effect on price.
....and the conclusion I come to is that no matter how much money CheckFree throws at trying accelerating growth they will still have to wait for the Banks, other FI's, and non-FI's to ramp up.
Benny (most (if not all) analysts have a 12-18 month price target of $25 - $35 dollars a share). |
