If companies are buying their own stock, they are decreasing the float so if there is money chasing less stock; the stock will rise in value. The insider feels that his company is undervalued when he is buying back shares.
(A Top Pick April 30/12. Up 10.54%.) These are companies that buy back their shares. The theory is if companies are buying back their shares, that means that there is less stock available, which in theory, should drive the price higher.
These are companies that have bought back more than 5% of the shares in the past 12 months. Stocks go higher based on nothing more than supply and demand. If companies are buying shares back, they are reducing the amount of shares outstanding so there is more money chasing less stock.
(Top Pick Feb 7/14, Up 13.53%) Companies that have bought back at least 5% of their stock in the last 12 months. The objective is to take a lot of stock out of the marketplace and have the same number of people wanting to own them.
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