Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of consumer goods maker Jarden (NYS: JAH) jumped as much as 10% today after the company announced increased revenue guidance.
So what: The company now expects fourth-quarter revenue to be between $1.73 billion and $1.74 billion, slightly beating estimates of $1.72 billion in revenue. The company also announced a tender offer to buy back $500 million in shares, an acceleration of an existing buyback program. Management expects to buy shares between $30 and $33 each.
Now what: With more than $800 million in cash, the company has more than enough to fund the share repurchase. Even after today's bump, shares trade at just 8.7 times forward earnings, so I think the value is strong right now. I don't usually like to buy on a day a stock jumps like this, but I think the good news from Jarden is too good to pass up.
Interested in more info on Jarden? Add it to your watchlist byclicking here.
At the time thisarticle was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.