Earlier today Disney (NYSE: DIS ) announced that it will start buying back up to $8 billion worth of its own shares beginning in fiscal year 2014. According to Consumer Goods Analyst Michael Finarelli, that's about 6%-7% of Disney's current market cap, which is a big enough percentage for shareholder's to react positively to the news; by market close Disney was up around 2.5%.
Michael thinks that this is a good deal for long term investors. According to him Disney isn't too expensive right now, has a strong brand, and has tremendous earnings value, which means that investors will see a some value from the company reclaiming its shares.
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