Friday, July 24, 2009

If a tree falls in a Forest...

... and no one is around to hear it, does it make a sound?

While reading the transcript of Forest Labs' (FRX) quarterly conference call, this quote kept coming to mind.

CFO Frank Perier said:
Actual shares outstanding as of June 30 were at 301,676,000 a reduction of 3.1 million shares from last year due mainly to the company share repurchase program. We did not repurchase any stock in the first quarter and have remaining authorization to repurchase up to 5.7 million shares.

Our cash and marketable securities balance at June 30 was approximately $3.4 billion, an increase of $370.6 million from last quarter.
That's over $11 a share in cash. Current quote: $25.85 or a market value of $7.8 billion.

And cash increased $370 from LAST QUARTER?

That's a lot of falling trees. Are you listening?


  1. To be honest, it's better if many don't listen...provided that the falling trees shed off a high dividend yield. Bull trends which are generally yawned at, tend to last longer.

  2. I came across FRX via Joel Greenblatt's magicformula (

    I, too, was thoroughly impressed with the quality of Annual Report. It is rare to see the management calling a spade a spade.