2015-04-13

Verisign Stock, Goldman Sachs Recommendation, Buyback Blackout

Background: Verisign [NASDAQ: VRSN] provides Internet infrastructure services, including domain name registry services for all .com, .net, .cc, .tv and .name TLDs (top-level domains) and back-end systems for all .gov, .jobs and .edu TLDs, and also performs the Root Zone Maintainer functions for the core of the Internet’s Domain Name System (DNS), pursuant to an agreement with the US Department of Commerce.

Goldman on buyback blackout window - "Goldman Sachs' Amanda Sneider argues that a good time to buy a stock is before a company announces a big share repurchase plan... "The majority of companies just entered the buyback blackout period leading into the 1Q 2015 reporting season," Goldman's Sneider said... "Roughly 70% of S&P 500 firms will report 1Q results during a three-week period between Monday, April 13, and Friday, May 1," Sneider noted. "We expect S&P 500 firms will boost repurchases by 18% to $604 billion in 2015," she added. But as we wait, we could see weakness in stock prices, which Sneider thinks is good news for people with some cash to invest... Sneider recommends investors buy a basket of companies "focused on returning cash to shareholders via buybacks and dividends."" (source: Goldman Sachs via Business Insider, emphasis added)

Verisign to Report First Quarter 2015 Financial Results on Thursday, April 23, 2015.

Why Goldman sees a buyback halt as a big opportunity - MarketWatch: "... As earnings season approaches, U.S. companies are required to refrain from discretionary buybacks during a so-called blackout period that lasts from about five weeks before their respective earnings reports to about 48 hours after earnings are reported, notes Amanda Sneider, portfolio strategist at Goldman Sachs. In a recent client note, Goldman trumpeted this pause on buybacks as a great opportunity for investors..." (emphasis added)

Goldman Sachs recommends Verisign as one of these buyback stocks with a purported buyback yield of 15.3%.

Also note recent press releases from Verisign (emphasis added):
Verisign Announces Proposed $400 Million Offering of Senior Unsecured Notes (NASDAQ:VRSN): "03/23/15 -- VeriSign, Inc. (NASDAQ: VRSN) ("Verisign") today announced a proposed offering of $400 million aggregate principal amount of senior unsecured notes due 2025 (the "Notes"). The timing, size and terms of the Notes are subject to market conditions and other factors. Verisign intends to use the proceeds from the offering for general corporate purposes, including, but not limited to, the repurchase of shares under its share repurchase program...."

Verisign Announces Pricing of $500 Million Offering of Senior Unsecured Notes (NASDAQ:VRSN): "03/24/15 -- "Verisign Announces Pricing of $500 Million Offering of Senior Unsecured Notes - "Verisign intends to use the proceeds from this offering for general corporate purposes, including, but not limited to, the repurchase of shares under its share repurchase program." 

more info: 

Disclosure: Domain Mondo's publisher and editor have no current nor planned positions in Verisign stock, long or short. As always, note Disclaimer at the bottom of this website page--Caveat Emptor!


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