Alliance Data Systems Corp (NDAQ:ADS)
8K Filing by the Company
Alliance announced today that it would be instituting a buyback program to repurchase up to $600 million of its common stock through 2006. This is significant because Alliance's market cap is only $4.52 billion, which makes this transaction cover around 14% of the company's outstanding stock.

Hastings Entertainment, Inc. (NDAQ:HAST)
8K Filing by the Company
Hastings announced today that it would buyback $2.5 million worth of shares because it believes its stock is current undervalued. This follows the company's previous arrangement to buy back $12.5 million, of which it still has $3.6 million remaining. The company is trading well below its enterprise value ($117 million EV with an $81 million market cap!).

SAIC (NYSE:SAI)
S1/A Filing by the Company
SAIC said today that it would be pricing its shares between $13 and $15 with 75 million shares being issued. The company also revealed that it would be issuing a special dividend of between $1.6 billion and $2.4 billion paid to investors holding prior to the public offering. This is likely occurring because the company is currently employee-owned - so, this would be a bonus before they go public. The company also revealed it was growing at an annualized rate of 15.5% with revenues of $7.8 billion during their latest fiscal year.

Northfolk Southern Corp (NYSE:NSC) announced today in an 8K filing with the SEC that it would buyback an additional 50 million shares after already purchasing 17 million last quarter. The transaction is valued at over $900 million, while the previous transaction was valued at $730 million. The stock is off its high of $56 in May to it's current level around $44. The company is currently trading below enterprise value with a PEG of only 0.84 - making it significantly undervalued. This buying could indicate that the company believes it is at a bottom.

Related Companies
CSX Corporation (CSX)
Kansas City Southern (KSU)
Union Pacific Corp (UNP)

Banta Corporation (NYSE:BN) announced today in a press release that it has rejected Cenveo's increased bid to buyout the company. We covered Cenveo's bid in a previous article in September, when they offered $47/share for the company and called the company's actions "110% un-American". Cenveo also threatened to take other actions, which were not detailed. The only way for them to acquire the company without shareholder approval of a bid is through a hostile takeover, where Cenveo would begin acquiring Banta share on the open market until they achieve a majority position (which would be reported in 13D filings with the SEC). Then, they could nominate their own directors to the Board and attempt to take over the company in a proxy battle. However, this is a very expensive process, making it an unlikely scenario. The alternative is for them to raise their bid even higher, in hopes that the Board will approve.

In the press release, Banta also said it would seek other ways to increase shareholder value:

"The Board has authorized management, in consultation with its financial advisor, UBS Investment Bank, to explore all potential strategies for further maximizing shareholder value, including, but not limited to, remaining independent, joint ventures, mergers, acquisitions, further return of capital, or the sale of the Company ... The Company also advised that it does not intend to disclose developments regarding its evaluation unless, and until, a final decision is made."

The Board is most likely hesitant to sell the company at $47 because the stock has already traded as high as $52 this year - the only reason Cenveo was able to place an offer at such a premium is because the company's stock dropped to $34 after they lowered their FY 2006 guidance. As a result, the Board may see this offer as not having the premium that most people expect when buyout offers come. Moreover, Cenveo may have problems convincing other shareholders to sell out at this price for the same reason - many shareholders may have been buyers in the $50's, so the $47 offer does not represent a premium.

What happens with the evaluation of strategic alternatives remains to be seen. Cenveo has called this process a joke, stating that management never had any intention of doing anything to help the company's shareholders. However, if the company does follow though with its review process, it could result in a special dividend, share buyback program, or even a sale, which could open up the company to a bidding war. The results of this can be found in the company's future 8K filings, while any hostile action by Cenveo will be first seen in future 13D filings. This stock is definitely one to keep an eye on!

Related Companies
StarTek, Inc. (SRT)
Courier Corporation (CRRC)