In his Diversified Buybacks model (performance indicated above – click to enlarge), manager David Fried selects among stocks of companies that have recently bought back their own shares. Last week Fried added two new positions to the model.
On January 5th, Fried added Coach Incorporated (NYSE: COH). In 2010, COH reduced its outstanding shares by 6.5 percent. Though COH was recently downgraded from a buy to a hold by the analysts at Jeffries, some still have faith in COH as well as other retail stocks. COH closed at $53.49 on January 10th, up from its January 5th closing price of $52.54.
Fried also added H & R Block Inc (NYSE: HRB) to his model. On December 9th, Zacks.com reported that HRB had narrowed its reported losses during quarter two 2011 by repurchasing 3.5 million shares of its stock. HRB had a challenging year in 2010. Its stock price went from closing at $22.62 on December 31st, 2009 to $11.91 on December 31st, 2010. 2011 has had a rough start as well, since a ruling denying HRB the ability to issue refund anticipation loans (a service that brought the company a reported $146.2 million in revenue during the 2010 fiscal year). But like COH, many investors still believe in the potential of the company and the stock price has even risen a little this year, closing at $12.66 on January 10th.
If you’re interested in investing in companies that are buying their own stock, be sure to check out the Diversified Buybacks model on Covestor.
*Prices courtesy of Yahoo Finance.
