News: what it meansWhat this news means to me is:
1. the stock price will go up, probably significantly, since Capstone will be buying its own stock in the market and competing with other buyers. ("If Capstone believes their stock is undervalued, and is buying it, why shouldn't I?")
2. If there is an acquisition, Capstone intends to issue shares, or use debt, since they will have less cash available.
3. If there is an acquisition, to the extent that the terms of the deal are based on the share price of Capstone, a higher stock price means that Capstone doesn't need to issue as many shares in the transaction.
4. Any reduction in shares outstanding has the affect of increasing earnings per share, making itself more attractive in an acquisition or a takeover.
5. A share buyback doesn't preclude Capstone from being involved in an acquisition or a takeover; they just haven't found (or finalized) the right opportunity yet.
TooClassy