While other Seeking Alpha commentators are more bearish on the announcement, I find Facebook's (NASDAQ:FB) buyback authorization to be a very bullish signal from the Board of Directors that Facebook's shares are too cheap to ignore. I think shares are without question a buy at current levels in light of their recent swoon.
From a pure magnitude point of view, I certainly agree that Facebook retiring ~1.7% of shares outstanding is not particularly meaningful. Stock-based compensation is a major expense for Facebook, accounting for $3.1 billion over the trailing 12 months. So, effectively, Facebook would offset two years of dilution.
But it isn't about using share count to boost EPS, it's about Facebook's investment prospects. CEO Mark Zuckerberg has been incredibly aggressive when it comes to M&A, snapping up Instagram, WhatsApp, and Oculus Rift in multi-billion dollar deals. Facebook has never come out and found its own shares to be a great investment but this is exactly what the buyback authorization indicates: Facebook is a terrific investment at current levels.
Best Cheap Stocks To Watch For 2019: Tetra Tech Inc.(TTEK)
Advisors' Opinion:- [By Ethan Ryder]
Tri-Tech (OTCMKTS: TRITF) and Tetra Tech (NASDAQ:TTEK) are both industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.
- [By Logan Wallace]
Get a free copy of the Zacks research report on Tetra Tech (TTEK)
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Best Cheap Stocks To Watch For 2019: NovoCure Limited(NVCR)
Advisors' Opinion:- [By Stephan Byrd]
Get a free copy of the Zacks research report on Novocure (NVCR)
For more information about research offerings from Zacks Investment Research, visit Zacks.com
- [By Ethan Ryder]
NovoCure (NASDAQ:NVCR) Director Gabriel Leung sold 80,000 shares of the firm’s stock in a transaction on Wednesday, May 16th. The stock was sold at an average price of $28.83, for a total value of $2,306,400.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link.
- [By Brian Feroldi]
After the company reported first-quarter results, shares of NovoCure (NASDAQ:NVCR), a medical device company focused on cancer, jumped as much as 10% in afternoon trading on Thursday. Shares closed the day up more than 9%.
Best Cheap Stocks To Watch For 2019: Rocky Mountain Chocolate Factory Inc.(RMCF)
Advisors' Opinion:- [By Max Byerly]
Rocky Mountain Chocolate Factory (NASDAQ: RMCF) and Tootsie Roll Industries (NYSE:TR) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.
- [By Ethan Ryder]
Rocky Mountain Chocolate Factory (NASDAQ: RMCF) and Tootsie Roll Industries (NYSE:TR) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.