This is converse to the way most companies end up doing it. Usually when times are good they buy back stock at highs and then tough time restrict their cash and nothing is bought back at the lows. Not this time…. The news:
Brookfield Properties Corp. (BPO) announced that the Toronto Stock Exchange accepted a notice filed by Brookfield Properties of its intention to renew its prior normal course issuer bid for a further one year period. Brookfield Properties stated that at times its common shares trade in price ranges that do not fully reflect their value. As a result, from time to time, acquiring common shares represents an attractive and a desirable use of available funds. The notice provides that Brookfield Properties may, during 12 month period commencing September 22, 2009 and ending September 21, 2010, purchase on the Toronto Stock Exchange and/or the New York Stock Exchange up to 25,032,918 common shares, representing approximately 5% of its issued and outstanding common shares. Under the normal course issuer bid, Brookfield Properties may purchase up to 271,694 common shares on the Toronto Stock Exchange during any trading day, which represents 25% of the average daily trading volume on the Toronto Stock Exchange for the most recently completed six calendar months prior to the….
This is the way it ought to be done. Cash sitting on hand so that when the market sells off your shares for whatever reason, you are able to pick them up on the cheap.