Don't overlook Nucor's (NUE) share buyback
Back in September, Nucor Corp. (NYSE:NUE), the second-largest U.S.-based steelmaker, said it plans to buy back as much as $1.66 billion of its shares after profit rose to a new record.
Chief Executive Officer Dan DiMicco wants to boost Nucor shares after the stock fell about 20 percent since June. Falling steel prices and speculation metals companies were less likely takeover candidates after credit markets tightened helped send the stock to its lowest level in more than a year on Aug. 16.
Take a look at the last 6 months, the chart speaks for itself:
Fellow Stockmasters - it's now November 19th and shares have once again plummeted - 12% in the last month to be exact.
The buyback of as many as 30 million shares represents about 10 percent of the stock outstanding, and as far as I can tell they have purchased about 1/3 of that in the last quarter. We believe this to be a great opportunity to buy in before they start snatching up the other 2/3 of their planned buyback.
The company's Q3 performance was less than stellar, reporting a 29% decrease in earnings for the quarter. In spite of that, top line growth remains robust as the company reported an 8% increase in net sales.
|PRICE TARGET SUMMARY ON NUE|
Co-Founder of theStockMasters.com
The StockMasters Master Picks Newsletter has a 15.29% Positive return since our inception in October 2006. The Average duration for our stock picks is 3.61 months, and we have the track record to prove it (click here to view Master Picks track record). Our price is only $45 for an entire 12 month subscription. Consider our newsletter as an affordable supplement to your stock research. We aren't trying to kill you with an outrageous annual fee and it will cost you less than a round of beers and shots for you and your crew. Make the right choices, be informed and have more money for flaming Dr. Peppers. Get our newsletter on sale at WallStNewsletters.com
Best of the Blogs
Scanning and identifying the best blog entries every hour
- China Manufacturing PMI and Output Back in Contraction | Financial Sense
- Year-End Rally | Financial Sense
- What Record Stock Buybacks Say About Economic Growth | ZeroHedge
- Frontrunning: November 21 | ZeroHedge
- "We Are Living In An Aberrational World" | ZeroHedge
- More Good News for Employment | Financial Sense
- The NYPD Does It Again | ZeroHedge
The most relevant financial news and articles from the Internets
- Ferguson on edge ahead of grand jury decision | Business Insider
- What Steve Jobs, Elon Musk, And 11 Other Tech Visionaries Were Like In... | Business Insider
- Unusual 11 Mid... | StreetInsider.com
- ... | StreetInsider.com
- Lego Is for Girls | BusinessWeek
- Notable... | StreetInsider.com
- Still 'no significant progress' in Iran talks... | Business Insider