##{"id":59684,"date":"2012-03-21T11:35:46","date_gmt":"2012-03-21T00:35:46","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2012\/03\/21\/treasure-chest-stocks-with-buyback-potential\/"},"modified":"2012-03-21T11:35:46","modified_gmt":"2012-03-21T00:35:46","slug":"treasure-chest-stocks-with-buyback-potential","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2012\/03\/21\/treasure-chest-stocks-with-buyback-potential\/","title":{"rendered":"Treasure Chest: Stocks With Buyback Potential"},"content":{"rendered":"<p>\n\tBy Greg Peel<\/p>\n<p>\n\tCorporate share <span>buybacks<\/span> are a form of capital management which benefits shareholders through a reduced share count leading to higher earnings per share, all things being equal. With many Australian companies now cashed up after the long post <span>GFC<\/span> de-gearing process, several have undertaken or are undertaking <span>buybacks<\/span>.<\/p>\n<p>\n\tThe equity strategists at Goldman Sachs have screened the Australian stock market using a top-down approach overlaid with analyst (bottom up) views. Companies showing strong buyback potential are those with low gearing and only modest capital expenditure plans over the next couple of years.<\/p>\n<p>\n\tUnder this assessment, <span>Goldmans<\/span> has listed those companies with the strongest buyback potential as Premier Investments ((<span>PMV<\/span>)), Flight Centre ((<span>FLT<\/span>)), <span>Wotif<\/span> ((WTF)), <span>Iluka<\/span> ((<span>ILU<\/span>)), Perpetual ((<span>PPT<\/span>)), <span>Breville<\/span> Group ((<span>BRG<\/span>)), <span>ARB<\/span> Corp ((ARP)), <span>Iress<\/span> ((IRE)) and James <span>Hardie<\/span> ((<span>JHX<\/span>)).<\/p>\n<p>\n\tStocks that did not shine on the screening process but which the Goldman analysts believe show potential for <span>buybacks<\/span> include Adelaide Brighton ((ABC)), <span>Ansell<\/span> ((ANN)), Brambles ((<span>BXB<\/span>)), <span>CFS<\/span> Retail ((<span>CFX<\/span>)), Domino&#039;s Pizza ((<span>DMP<\/span>)), <span>GUD<\/span> Holdings ((<span>GUD<\/span>)), News Corp ((NWS)), Sigma Pharmaceutical ((SIP)), SMS Management &amp; Technology ((<span>SMX<\/span>)), <span>Suncorp<\/span> ((SUN)), Telstra ((TLS)) and <span>Whitehaven<\/span> Coal ((<span>WHC<\/span>)) along with the Big Four banks.<\/p>\n<p>\n\tPast research by investment bankers and stockbrokerages suggests companies announcing share <span>buybacks<\/span> are likely to outperform over a short to medium term horizon.<br \/>\n\t&nbsp;<\/p>\n<p>\n\t<em>Find out why <span>FNArena<\/span> subscribers like the service so much: &quot;<a href=\"http:\/\/www.fnarena.com\/index4.cfm?type=dsp_newsitem&amp;n=29EB960D-9DFF-C00E-7F6B464E5D52E250\">Your Feedback (Thank You)<\/a>&quot; &#8211; Warning this story contains unashamedly positive feedback on the service provided.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>FNArena&#8217;s Treasure Chest reports on money making ideas from stockbrokers and other experts. Goldman Sachs screens the Australian market for stocks with the potential to conduct accretive buybacks.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[17],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/59684"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=59684"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/59684\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=59684"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=59684"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=59684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}