HP, once notorious for lavish and often extravagant expenditure, has announced a massive share buy back program. The company will be spending a whopping $1.3 billion on its shares, amounting to ~4% of shares available. The HP board have also ok-ed an extra $2.1 billion worth of spending on shares in the future, at good prices. HP"s share price increased with news of the buy back.
Carly Fiorina, top girl at HP, remarked that "HP has accelerated its share repurchases in recent quarters and today"s announcement signals our intent to aggressively repurchase shares in the immediate future. We believe that at current price levels, HP shares represent an attractive investment.
"This purchase reflects our confidence in our long-term growth and profitability. Our strong balance sheet and significant cash flow from operations allow us the flexibility to simultaneously invest in our current business, pay one of the highest dividends in the industry, accelerate our share repurchases and opportunistically take advantage of strategic opportunities."