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The one surprise is that management has chosen not to roll the buyback into 2013 – instead the dividend rises 20% to 36.5p.
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Twenty-two mislion'tollars isn'thatat much money, given that Lending Club facilitated $2.6 billion in loans in its most recent quarter, but the buyback played into investors' broader concerns about the industry, and in particular about whether online lenders have set up rigorous-enough oversight mechanisms.
[5] "Big Companies Put Record Sums Into Buybacks," Ian McDonald,.
It said the buyback would cut into its fourth-quarter earnings by about $30 million on a pretax basis.
The individual investor needs to ask: Can a buyback announcement turn into a profitable trade or investment?
Take this one, for example: Called the ecoATM, it's essentially a reverse vending machine for phone sales — or, put another way, it's the concept of Gazelle (or any other online cell phone/gadget buyback service) made into a kiosk.
The money Dell put into buybacks might have gone into research and development.
Before launching into a buyback, it may behoove Mr. Buffett to consider a less expensive route: shares of Boulder Total Return Fund, a $203.6 million closed-end fund.
The investigation is also looking into the buyback of 21 million shares of Vivendi stock in September and October 2001, an effort meant to support the share price after the Sept. 11 attacks.
Investigators are also looking into the buyback of 21 million shares of Vivendi stock, worth roughly $1.2 billion, in September and October 2001, an operation meant to stabilize the share price of the company in the wake of the Sept. 11 attacks.
IBM has already thrown another $3.5 billion into its buyback hopper.
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