CECO massive $253M share buyback started 12/21/11
If STX is a hint of why a company buys back shares, then we are in for a big upside surprise in CECO shares just like we have seen in STX shares today.
Form 8-K for CAREER EDUCATION CORP
Other Events Item 8.01 Other Events.
On November 21, 2011, Career Education Corporation (the "Company") entered into a stock repurchase plan established in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the "1934 Act"), in connection with its previously authorized stock repurchase program. A Rule 10b5-1 plan allows a company to repurchase its shares at times when it otherwise might be unable to do so under the 1934 Act's insider trading rules.
The Company's 10b5-1 repurchase plan (the "10b5-1 Repurchase Plan") will facilitate purchases of the Company's common shares under its authorized stock repurchase program. As of November 21, 2011, approximately $253.3 million was available under the stock repurchase program, which does not have an expiration date and may be suspended or discontinued at any time. Commencing December 21, 2011, the Company's designated broker will have authority under the 10b5-1 Repurchase Plan to repurchase up to $70 million of the Company's common stock, reduced by the cost of any shares that may be repurchased by the Company between November 21 and December 21, 2011 outside of the 10b5-1 Repurchase Plan. Purchases of common stock under the 10b5-1 Repurchase Plan will be subject to specified parameters and certain price and volume restraints as established in the Plan.