COMPANY
REPURCHASES
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CHAIN BRIDGE INVESTING
JANUARY 31, 2010
COMPANIES ANNOUNCING REPURCHASES FROM JANUARY 25 - 29, 2010
Chain Bridge Investing (“CB”), on a weekly basis, will shift through publicly held companies that have announced share repurchase plans during the past week. Share repurchase programs represent a strategic capital allocation decision by the company’s management. In a world where all other variables are held constant, repurchases will increase the value of the shares held by the current investors. Theoretically, a company should only repurchase its shares when it believes the shares are cheaply priced in the market and does not have other more profitable uses of its cash. On the other hand, a company tends to issue shares when it needs additional financing or believes the current market pricing is expensive. A company that has decided to repurchase its shares usually merits the attention of investors. In general, few companies make these repurchases, which tend to be implemented by managements considerate of the shareholders’ interest. Instead, many companies, especially those straddled with debt, will frequently issue additional shares to obtain necessary financing. Yet, share repurchases can indicate a company has limited growth potential or management is missing other investment opportunities. Nevertheless, share repurchases should not be ignored. This week, CB found four companies announcing repurchases ranging from .34% to 16.34% of the current shares outstanding. Some of the larger announced repurchases are: (1) Assurant (“AIZ”); (2) WellPoint (“WLP”); and (3) Quest Diagnostics (“DGX”). CB finds it interesting that Amazon announces a repurchase plan now that its share price has increased significantly over the last 52 weeks and not when the stock was cheaper. The fundamentals of these companies are show in the exhibits below. If CB discovers any future investment potential in these companies, it will be posted on www.chainbridgeinvesting.com. As a final note, these listings are in no way to be construed as financial advice or investment recommendations. These listings are meant to provide ideas to readers for their own research and show parts of the investment research process of CB. All data is pulled from Stock Pro Investor and Yahoo! Finance. CB is not an investment advisor, please read the disclaimer at www.chainbridgeinvesting.com/disclaimer/.
EXHIBITS
Exhibit A: Companies Announcing Share Repurchases from January 25 - 29, 2010 Announced Est. Shares to be Percentage of Shares Repurchase Amount Repurchased at Announced Shares Shares Currently that Could be in Dollars Current Price To Be Repurchased Outstanding Repurchased $ 75,000,000 1,000,000,000 2,000,000,000 1,000,000,000 50,000,000 n/a 3,500,000,000 n/a n/a 600,000,000 10,000,000 750,000,000 2,058,178 20,716,801 15,947,692 21,510,002 2,110,595 n/a 54,927,809 n/a n/a 19,090,041 2,298,851 13,472,247 n/a n/a n/a n/a n/a 2,000,000 n/a 250,000 15,000,000 n/a n/a n/a 107,162,000 899,828,000 432,982,000 1,450,000,000 89,449,000 41,585,000 458,345,000 73,277,000 471,000,000 116,799,000 49,155,000 183,300,000 1.92% 2.30% 3.68% 1.48% 2.36% 4.81% 11.98% 0.34% 3.18% 16.34% 4.68% 7.35%
Date 1/29/2010 1/29/2010 1/28/2010 1/28/2010 1/28/2010 1/27/2010 1/27/2010 1/26/2010 1/26/2010 1/25/2010 1/25/2010 1/25/2010
Company Ametek Gilead Sciences Amazon.com AstraZeneca Informatica New Jersey Resources WellPoint Capital Federal Financial Canadian National Railway Assurant NewStar Financial Quest Diagnostics
Ticker AME GILD AMZN AZN INFA NJR WLP CFFN CNI AIZ NEWS DGX $ $ $ $ $ $ $ $ $ $ $ $
Price 36.44 48.27 125.41 46.49 23.69 36.49 63.72 32.62 49.93 31.43 4.35 55.67
COMPANY REPURCHASES © 2010 Chain Bridge Investing
REPURCHASES
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PAGE 2 JANUARY 31, 2010
EXHIBITS (CONTINUED)
Exhibit B: Companies Announcing Share Repurchases from January 25 - 29, 2010
# 1 2 3 4 5 6 7 8 9 10 11 12 Company Name AMETEK, Inc. Gilead Sciences, Inc. Amazon.com, Inc. AstraZeneca plc (ADR) Informatica Corporation New Jersey Resources Corporati WellPoint, Inc. Capitol Federal Financial Canadian National Railway (USA Assurant, Inc. NewStar Financial, Inc. Quest Diagnostics Incorporated Ticker AME GILD AMZN AZN INFA NJR WLP CFFN CNI AIZ NEWS DGX Industry Scientific & Technical Instruments Biotechnology & Drugs Retail (Specialty Non-Apparel) Major Drugs Software & Programming Natural Gas Utilities Insurance (Accident & Health) S&Ls/Savings Banks Railroads Insurance (Accident & Health) Consumer Financial Services Healthcare Facilities Exchange New York Nasdaq Nasdaq New York Nasdaq New York New York Nasdaq New York New York Nasdaq New York Website http://www.ametek.com/ http://www.gilead.com/ http://www.amazon.com/ http://www.astrazeneca.com/ http://www.informatica.com http://www.njresources.com/ http://www.wellpoint.com/ http://www.capfed.com/ http://www.cn.ca/ http://www.assurant.com http://www.newstarfin.com/ http://www.questdiagnostics.com/ Country United States United States United States United Kingdom United States United States United States United States Canada United States United States United States
Exhibit C: Companies Announcing Share Repurchases from January 25 - 29, 2010
# 1 2 3 4 5 6 7 8 9 10 11 12 Company Name AMETEK, Inc. Gilead Sciences, Inc. Amazon.com, Inc. AstraZeneca plc (ADR) Informatica Corporation New Jersey Resources Corporati WellPoint, Inc. Capitol Federal Financial Canadian National Railway (USA Assurant, Inc. NewStar Financial, Inc. Quest Diagnostics Incorporated Price $ 36.44 48.27 125.41 46.49 23.69 36.49 63.72 32.62 49.93 31.43 4.35 55.67 % of 52- Mkt. Cap. Cash Wk. High (m) Debt (m) (m) 91.6% $ 3,932 $ 1,042 $ 251 90.6% 42,755 3,905 86.0% 56,026 109 3,444 91.7% 68,139 11,063 9,918 87.8% 2,118 201 139 86.1% 1,520 707 36 91.0% 29,527 8,796 4,816 72.6% 2,425 714 41 87.3% 24,088 6,209 219 94.2% 3,689 980 1,236 97.8% 213 1,704 141 88.6% 10,274 3,107 534 EV (m) $ 4,722 38,851 52,691 69,284 2,181 2,191 33,506 3,098 30,078 3,433 1,776 12,847 Short Gross Ratio Margin 5.6x 31.6% 1.9x 77.2% 1.3x 22.6% 6.4x 82.4% 5.7x 82.3% 8.9x 13.4% .8x nm 7.7x nm 2.4x 49.2% 1.3x nm 6.7x nm 3.1x 42.0% Oper. RoA RoE Margin (LTM) (LTM) 17.4% 6.5% 14.2% 27.4% 44.0% 68.6% 4.6% 9.6% 24.0% 35.2% 14.8% 41.1% -937.2% 6.8% 15.2% 1.9% 1.1% 3.7% 12.1% 9.5% 20.7% 41.2% 0.8% 7.2% 33.6% 6.9% 16.8% 9.6% 2.4% 14.4% -11.6% -1.1% -4.9% 18.2% 8.7% 19.2%
Exhibit D: Companies Announcing Share Repurchases from January 25 - 29, 2010
# 1 2 3 4 5 6 7 8 9 10 11 12 Company Name AMETEK, Inc. Gilead Sciences, Inc. Amazon.com, Inc. AstraZeneca plc (ADR) Informatica Corporation New Jersey Resources Corporati WellPoint, Inc. Capitol Federal Financial Canadian National Railway (USA Assurant, Inc. NewStar Financial, Inc. Quest Diagnostics Incorporated P/E PE Yr+0 19.1x 16.7x 16.8x 13.8x 74.3x 48.3x 9.4x 7.2x 38.3x 23.8x 57.0x 14.3x 13.6x 10.4x 36.1x 36.9x 14.0x nm 6.3x 7.7x nm nm 14.5x 13.2x PE PE - 3 Yr. Yr+1 Avg. EPS PEG 14.6x 17.3x 1.1 12.2x 21.7x 1.0 35.2x 81.3x 1.8 7.7x 10.7x nm 19.8x 46.1x 1.4 13.7x 23.2x 2.0 9.3x 9.6x 1.3 35.8x 47.9x nm nm 13.5x nm 7.6x 6.4x 0.8 nm NA nm 12.0x 16.9x 1.1 P/S 1.86x 6.10x 2.52x 2.12x 4.47x .59x .48x 12.06x 3.50x .42x .0x 1.38x % P/B P/ FCFPS CapEx/S 2.5x 16.6x nm 6.6x 17.9x nm 15.2x 19.4x 1.5% 3.5x 9.4x 4.8% 4.8x 27.5x 1.6% 2.2x 8.2x 2.9% 1.3x 11.7x 0.6% 2.6x 17.9x 3.2% 2.3x 78.0x 17.1% .8x 13.7x 0.7% .4x 4.6x 0.1% 2.6x 13.8x 2.2% S 1 Yr. Gwth -17.1% 31.4% 27.9% 3.8% 16.5% -32.1% 6.2% 0.5% 7.4% 1.7% -7.6% 2.8% S 3 Yr. EV/ LT Debt/ Net Debt/ CAGR EBITDA Total Cap. EBITDA 4.9% 10.97x 37.9% 1.84x 32.3% 10.22x 0.0% -1.03x 31.8% 45.58x 2.0% -2.88x 7.4% 5.12x 30.7% .08x 19.4% 20.38x 31.5% .58x -7.5% 27.66x 40.1% 8.46x 4.5% 7.0x 25.1% .83x 0.2% nm 43.1% nm 4.4% 10.06x 36.3% 2.0x 4.7% 3.47x 16.7% -.26x 77.3% nm 75.3% nm 5.9% 8.03x 42.4% 1.61x
* Abbreviations: EV = Enterprise Value; M = Millions; LTM = Latest-12 Months; RoA = Return on Assets; RoE = Return on Equity; P/E = Price/Earnings; PEG = Price/Estimated Earnings Growth; P/S = Price/Sales; P/B = Price/Book; P/FCFPS = Price/Free Cash Flow per Share; CapEx = Capital Expenditures; S = Sales; CAGR = Compounded Annual Growth Rate; EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization; NM = Not Material. * All company financial data is downloaded from Yahoo and Stock Investor Pro, Chain Bridge Investing does not guarantee the accuracy of these figures and encourages readers to do their own research. This presentation is meant to provide the reader with some research ideas. * Due to formatting some company names may be abbreviated.
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