Topic: How To Invest

The Successful Investor Hotline – Friday, August 16, 2019

Article Excerpt

ENCANA CORP., $5.57, Toronto symbol ECA, has amended the terms of its plan to buy back up to $213 million U.S. of its common shares (about 4% of the company’s current market cap) through a Dutch auction process. Share repurchases raise earnings per share and other per-share calculations, which gives the remaining shareholders a larger stake in the company. Due to a recent drop in Encana’s stock price, participating investors must now offer their shares for between $4.15 U.S. and $4.75 U.S. (in increments of $0.05 U.S.). That’s down from its original range of $4.70 U.S. and $5.40 U.S. The company has also extended the offer to August 28, 2019. As before, the final price will be the lowest amount within that new range at which Encana can buy the most shares for $213 million U.S. It will then pay that price for all shares tendered at or below it. If you tender at a higher price, Encana will return your shares. The…