Pursuit of its own shares was probably not a meaningful tool in building value for Ensco stockholders.
Last Updated Oct 29, 2008 2:16 AM EDT
In September 2008, the Board of Directors authorized the repurchase of an additional $500 million of Ensco common stock.
The Question: Might reinvesting the money on expanding its core offshore drilling business — opportunistic purchases of rigs on the cheap from smaller companies unable to compete in the current environment — be a better spend?.
© 2008 CBS Interactive Inc.. All Rights Reserved. In total, the company had purchased 16.5 million shares at a total cost of $937.6 million, or an average price of $56.79 per share.
Acclaimed movie director Billy Wilder once said: “Hindsight is always twenty-twenty.” At October 27, 2008, with the common stock of Ensco trading at $33.40 a share, the company had lost about $386.5 million, or almost 41 percent, of the cash invested in the repurchase programs.
The Upshot: During the nine-month period ended September 30, 2008, Ensco repurchased 3.7 million shares of its common stock at a cost of $256.0 million (an average cost of $69.92 per share) under a 2007 authorization plan
Latest posts by admin (see all)
- Using Reverse Line Movement To Win - April 8, 2017
- Real Money Gaming: The Next Billion Dollar Opportunity? - March 21, 2017
- How To Master Sports Betting - January 18, 2017