Walter Industries (WLT) buyback a great sign

Filed under: Management, Competitive strategy, Stocks to Buy

So you're sitting on the sidelines waiting for a sign that the markets are safe for reasonable speculation. What are you looking for? Do you want to see a bull market return before committing capital? Are you waiting for signs that the economy is turning the corner? How about corporate earnings improvement?

In the near term I expect to see more and more of the proverbial corporate buybacks. As such, I suggest investors use that event as a signal on individual equity securities. The power of these validations of value can be stunning.

After the market closed on Wednesday, basic materials company, Walter Industries (NYSE: WLT), announced that it would be expanding its stock buyback program by $50 million. On the surface, such amount is a small fraction of the more than $1 billion of market value outstanding, but the move is more than symbolic.

Essentially, management is taking advantage of ridiculously low levels in its stock price. For those looking to establish a position, such a move is a great endorsement of the company and its future.

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Walter Industries (WLT) buyback a great sign originally appeared on BloggingStocks on Sat, 03 Jan 2009 14:40:00 EST. Please see our terms for use of feeds.

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