Avigilon Fights Back Against Falling Share Price With Share Buyback

Author: John Honovich, Published on May 08, 2015

Avigilon's stock is down 50% from their peak price last year.

The stock price is also significantly below the levels when Avigilon raised an additional $169 million from investors in the past 2 years.

Now, Avigilon is gearing up to buy back stock at the much lower price levels. In this note, we look at the plan and how it might help Avigilon.

********'* ***** ** **** **% **** ***** **** ***** **** year.

*** ***** ***** ** **** ************* ***** *** ****** **** Avigilon ****** ************ $*** *********** ********* ** *** **** * *****.

***, ******** ** ******* ** ** *** **** ***** ** the **** ***** ***** ******. ** **** ****, ** **** at *** **** *** *** ** ***** **** ********.

[***************]

*************

** ***** *** ********* ** ****, ******** ***** *** ******** was ******* ******** **. ** *** **** ** ******, *** difficulties **** **********, ******** **** ****** *********** ********** ********** *************************** ** **** ************.

***** ***** ***** ******** ****:

********'* ****** ************** ** *** ~$*** ******* *** ******** ** a ******* **** ** ~$*** *******.

Buying **** *****

******** *** ********* * "****** ****** ****** ***" ***** ****** ** ** *** ** ** **% ** the ****** ***** **** *** **** ** ******. *** ******* is *** ******** ** *** *** ****** ***, ** **** do, *** ****** "**** ** ******** ** ******** *** *********."

*** ************, ******** ******** *** ***** ** ***********:

"********'****** ** ********* ******** *** ******* ***** **********'******* ****** (*** "******") **** *** ******** ******* *** ********** ********, *********** ***** record, *** ****** ********* ** *** ********. "

***********?

******** ** ***** ************ ********* **********, **** ****, ***** *** Hikvision, *** *** **** * ********** **** *** *** ***** being ***********. *** *******, **** *** ******** ** ~** *******, while ********, **** * ******* ****** ****** ****, ** ******* at ** ** ****.

** *** ***** ****, ******** *** * *** **** *********** / ********** ***** **** *** ********** ********* ** *** *****. For *******, * ***** ***** ****** ***** ********* ***** *********** ** *** ***** ** **** *** **************** * *** **********. *** *** ******* *** ***** ********* departures ******** **** *** *** ********* ********** **** ********* ****** to ******* ****.

********'* ********** **** ** ****** ** ********** **** **** *************. Look ** ***** **** **** ************* ** ** ***** **** ***** ********* *** ********* ** the *******'* ************ ****** *** ******* ********** ****** *** ********. Even**********, * ******* ************** *** ********'* *****, *** *** ************ *********** ***** *** company's ****** *** ******* ** ******** *********.

**** *************, ** ** **** ** *** *** *** ******* is ****** ** *** ******* *************** ** *** ********* ****** market, ******* ** *** ******* ************* *** *** ******* ****. Even ** ******** ** * ******** ******* *******, ****** *** only *** ** ********* ********** ** *** ** ** **% level, *** *** **-**% ***** ** **** ** ****** ***.

Good **** *******

***********, **** ************ ****** **** ******** ** *** ***** **** as (*) ** ***** *** *******'* ********** ***** ** ****** the ***** ***** *** (*) ******** ********** ******* ***** *******, (3) **** **** *** ***** *** **** ** **** *** millions ** ******, ******** *** **** **** ****** **** *** credit ********* ** ****** ***** *** ****.

*** ****** ********** *** ********** *** **** **** *** *** company. **** *** ************ ********* ****** ****** *************, *** ******** continue ** ***** *** **** *********, ****** *******, ****** ***********, new ************ ***.? ** **** ******** ** ******* **** **** to * '******' ************ ************?

UPDATE */****: ****** ****

******** *** ********* ** **** ******* ********* ******** ********, ******* *** ** ***** '*********',*** ** ** ********* ************** *** ***** *********** ********** **** ****.

** *** **** ** ********** **** ****, *** ***** ***** was ~$**, *** ** ** **** ** ~$**.

Comments (7)

...******** *** **** **** ****** **** *** ****** ********* ** easily ***** *** ****.

****** **** ***** **** ******** ***** ************** *** ******** ******* *************. ** **** ***** *** ******* *************.

"** **** ***** *** ******* *************."

***? *** ****? ******** ** ***** ******* **** *** *****?

*********, *****'* **** ***** ** *** ***** *******, **** ** they *** ******* ******* ** ****** *****-******* ** ****** ** what ******** ***** **.

************, ** ****** *** **** **** **** ** ***** *** stock ***** *** **** ********* ******* * ****** **** ***, when ********* **** *** ******* **** ****** ******* *** *** a ******* *****.

*** **** ** *****************?

Interest *******

*,***,*** ****** @ $** = $**,***,*** = ~$*,***,***/**** ********. ****'* > **% ** **** ********.

Increased **** ** ******* / ********* ******

** ******** ******/*******/***** ***** *********, **** *** *** **** ** defaulting ** *** **** ** ** ***** ********* ********* ******* loans.

**** **** ** *****************?

*** ********* ********* ****** ********* ***** ** *** ***** ***** of ********?

*** ******* ******** *** ******* ** *** ***** *****?

*'* ******** **** *** ******** ** ****** ****** ***** ** have * ******** ******. ** *** ****** **** **** *** just ****** *** *** ****** *** * ***** *** **** of ****** *** ******** ** ****.

Paying **** for the shares is essentially saying, "The best way we can create investor value with our available capital is not to invest more in R&D or Sales and Marketing, but rather to speculate, right alongside our investor, on what our future performance will be."

*** ** ***** ** ** ****** *** *** *** *****, ok.

*** ********* ** ****** ** ******* ***** **********.

*** *** ******** **** *** *** **** **% (*********** **** slightly ****).

**** **** * *** **** *** **% ** **** *********** and *** ****** **** *** ***** ** ** ****.

*** *** ***** ** ******* *** ***** **** **. ** they *** ***** *** ** ***** ** ** **, **** win. ******, **** *** ***** ** **** *** ***** *** shares ** * ****** ***** *** '**** *****'.

** *** **** *********** ********, **** ** ******* **** *************. Just **** *** ********* ***** ***** *** ***** *** ******, a ******* *** ** ***. **'* **** *** *** ***** options *** ********* *** **** ******.

******, ********'* *********** *** ***** ** *** **** ******* ******* them, ** **** ****** ** *** ***** ** ******* *** prospects.

*** ***** **** ***********, **** *** ** *** * *** of ****** ** **************, *** ** *********** ******* ****, **** *** *** ****** ** *** **** ** *****...

******** ******** *** ***** ****** **** **** **** **** **** *** Fernandez ******** *** ***** *********** ** $** * *****, *** proceeded ** ******** $*,***,*** (****'* ******************) ** *** **** ****** ** ******* ******** **********.

*** *** **** **** ***?

**** **** **'* ******** **** ********'* *****, *** **** ***.

* **** **'* ***** *** *** ***'* **** **** **** whatever *** **** **** ** ** ***** *****, **** **** it, *** *********** ** ***** **** ******** ** ****** ******* and ***** **** ****?

**** **** **** *******, **** **** ****** ******, **** **** loyal *******. **** **** ** *********** ***** ********, *** ** an ********** ****.

"**** **** **'* ******** **** ********'* *****, *** **** ***."

** ******* ** ** **** *** **** ***** **'* '********'. Right ***, ** *** *** ~$*** ** **** *** * release ** *** ****. *** ***** *** ** *% *****, or $** ******* ******.

***, ***, * ** ***********. ** ***** **** *** ** be * *** ******** ** **** *** * *** ** shares *** *** ***** ********* ** ** ****. *** **'* a ****** ***** ******* / ****** ** ******** **** ***** help ****.

**** ** ** *********** *********:

** ********** **** *** *****, ***** ********* **** ** ******** under *** *** **** *** ****** **,*** ******, ******* ** certain ********** **********, ***** ** ***** ** **% ** ********'* average ***** ******* ****** ** *** *** *** *** *** calendar ****** ***** ***** **, **** ***** *** ***,*** ******.

** ***** *** **** ** ** **** *** **** *** stock**** ** * *****, *** *** ******* ***** ******* **,*** ****** **** ***** **. *** ******* ***** *** total ******* ** ****.

* **% ********** ****** *** ****** **** ****** ** ********* that ** **** ** **** * ********** ****** ** *** price *** **** ***. ** ***** **** *** ** ********** when *** ***** ** ****** * ***** ***.

****** **** ***'* ****** ** ****; ******** *** **** *** on * **** **** *** ** ********** ** *********** ***********. Still ***** ****'* *** **** **** ** *** ** **** they ***.

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