Canon Completes Stock Buyback Ahead of Schedule

[Canon Rumors]

Back on May 30, <a href="http://www.canonrumors.com/canon-inc-to-acquire-own-shares/">it was reported</a> that Canon would be buying back nearly 14 million of its own shares, and hoped to do so by July 14, 2017.</p>
<p>Today, Canon has announced that they have completed the buyback of 12,776,100 shares, which cost 49,999,720,400 yen or $449,040,488.95 USD.</p>
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[Mt Spokane Photography]

Often, in cases like this, they buy directly from one or more stockholders who are willing to sell for a price slightly higher than market value. It then does not affect the market, everyone wins.

That is a nice piece of change.

 

[Talley]

but why...

 

[Mt Spokane Photography]

but why...

The why was discussed some time ago when the buyback was announced. It increases the value of their shares, and they can offer stock in payment or partial payment cor their next acquisition. Canon is out to purchase more companies in the imaging / medical sector, that's where profits are. In the meantime, they gain more from a stock buyback at current low prices than banks pay in interest. Stock prices are going up when they see Canon's big profits later this year. Not from cameras, but from Medical and Surveillance.

 

[IglooEater]

I know little about these things, but does the strong yen make this a good time for Canon to make such a move?

 

[Mt Spokane Photography]

I know little about these things, but does the strong yen make this a good time for Canon to make such a move?

The Yen is still down in value. Back in 2011-2012, the Yen was extremely high. $1 USD only bought 78 Yen. Today, it buys 110 yen. I do not think that the Yen versus Dollar plays into it very much, but I think Canon sees profits shooting up, which means that the stock value will rise, so a good investment.


Look at this chart, its dollar value versus Yen, so higher means stronger dollar versus Yen.

http://www.xe.com/currencycharts/?from=USD&to=JPY&view=10Y

 

[IglooEater]

I know little about these things, but does the strong yen make this a good time for Canon to make such a move?

The Yen is still down in value. Back in 2011-2012, the Yen was extremely high. $1 USD only bought 78 Yen. Today, it buys 110 yen. I do not think that the Yen versus Dollar plays into it very much, but I think Canon sees profits shooting up, which means that the stock value will rise, so a good investment.


Look at this chart, its dollar value versus Yen, so higher means stronger dollar versus Yen.

http://www.xe.com/currencycharts/?from=USD&to=JPY&view=10Y

Thanks Spokane; apparently I know even less than the little I thought I knew.