Seagate: Pay Attention to Stock Buyback Signals
Stock buybacks often get a bad name in the financial press, but evidence continues to mount that, outside of a few glaring issues, the concept rewards shareholders. One recently unlikely success was the massive 2012 stock buyback programs by Seagate (NASDAQ: STX ) a leading supplier in the commodity enterprise storage sector that has seen its stock soar in 2013, along with fellow storage player Western Digital (NASDAQ: WDC ) .
With the PC market in decline, the storage business, and new methods of storage lurking to overtake the historical disk-drive-based systems of Seagate and Western Digital, the tandem thrived anyway. At the time, EMC (NYSE: EMC ) was the dominant stock to own in the storage space. Ironically, that stock hasn't seen any gains in the last couple of years, despite better growth. Ironically, the lagging stock is now ramping up buybacks.
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