Thursday, March 12, 2009

Intuitive Surgical

Anyone see all the action in ISRG options?

And why would ISRG spend $300 million buying back stock, with half of that coming in an accelerated share repurchase program?

Look for more JNJ for ISRG rumours to come out again, with option players circulating the story. Last December, ISRG ammended their employee severance plan, to offers employees that were laid off within a year of a change of control, six to twelve months of severance.

An accelerated share repurchase plan, would offset that cost, because those shares bought wouldn't reflect the takeover premium that an acquiring company would pay.

So look for options players to try and get that story going, especially now that the stock looks good on the charts.

No comments: