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What: Shares of U.S. Silica Holdings
So what: Management said that the board of directors authorized a $25 million stock repurchase program to be completed over the next 18 months. This will be in addition to normal capital expenditures and will use available cash on hand.
Now what: Management thinks the stock is cheap and you can see why when you look at the numbers. The trailing P/E ratio is 13.1 and the forward P/E ratio is just 5.8, an extremely low valuation. Add to that the fact that the company has crushed earnings estimates in the last two quarters and it looks like a good use of cash. I think this will be a catalyst for the stock moving higher, especially if the good performance continues.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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