For instance, AutoZone is in this week’s portfolio. The nation’s leading automotive retailer announced that it will repurchase an additional $500 million of the company’s common stock. AutoZone’s ongoing buyback program now totals $7.4 billion; this amount includes the new $500 million authorization. Bill Giles, AutoZone’s Executive Vice President and CFO commented, “AutoZone's strong financial performance has allowed us to continue to repurchase our stock while maintaining strong credit metrics.” He continued, "Although the financial markets remain challenging, we will continue to utilize share repurchases within the bounds of a disciplined capital structure to enhance stockholder returns while maintaining adequate liquidity to execute our financial plans." While most stocks have taken a beating over the past year, AutoZone has performed quite well. The S&P 500 index is down about 33% in the past year, while AutoZone’s share price has surged over 25%. On Dec. 9, 2008 the Memphis-based company reported first quarter results with total sales of $1.5 billion, an increase of 1.6% from the same period last year. Operating income increased half a percent or $1.2 million to $238.5 million. Diluted EPS surged 10.1% to $2.23 a share from $2.02 a share in the year-ago period. AutoZone opened 30 new stores and replaced two new stores in the U.S. and opened two stores in Mexico during the first quarter. As of November 22, 2008, there were 4,122 stores in the US and 150 stores in Mexico. After AutoZone reported the solid first quarter, analysts from Gabelli & Company issued a bullish note on the stock. The analysts have a buy rating on the stock noting the company’s strong cash flow generation at 5%-6% a year and management’s dedication to repurchasing shares. It’s also good to see that Renaissance Technologies owns shares of AutoZone. This New York-based hedge fund was started by Jim Simons in 1982. Simons only hires PhDs and the fund mainly employs computer based models to predict price changes in easily-traded financial instruments. The fund is highly secretive but we know that their top holdings are UST Inc and Wal-Mart. We also like to see that the D.E. Shaw Group is buying shares of AZO. The D. E. Shaw group is a global investment firm. Since its organization in 1988, the firm has earned an international reputation for financial innovation and an extraordinarily distinguished staff. The D. E. Shaw group encompasses a number of closely related entities with more than 1,000 employees, approximately $50 billion in aggregate investment capital. Their top stocks are Equity Residential and Pfizer. So we have a new buyback, strong first quarter results, analyst support and two top-notch investment firms buying shares. It might be time to take a closer look at AutoZone.

Next on the list is Shanda Interactive Entertainment. The Shanghai-based internet entertainment company recently increased its buyback plan from $200 million to $300 million. This amount includes $175 million in ADSs the company agreed to repurchase in an earlier buyback plan. The internet video game company reported strong third quarter results on December 1, 2008. Total revenues increased to a record $137.3 million, 42.7% better than the year-ago period and 11.8% better than the previous quarter. Operating income jumped 50% from the same period last year to a record $56 million. Diluted earnings per ADS came in at 68 cents a share. "We are pleased to report another solid quarter despite the global financial turmoil," said Tianqiao Chen, Chairman and CEO of Shanda. "Our third quarter results demonstrate the strength, breadth and balance of our company, as our 3C strategy continued to deliver. We are confident that the online entertainment industry will be more resilient through the economic cycle.” After Shanda’s third quarter results beat expectations, analysts from Needham had positive things to say. They believe Shanda is well positioned to weather a slowdown in the Chinese economy. Online games are a cheap form of entertainment; therefore online games will be less sensitive to the economy than other industries. Analyst Mark May added, “We believe Shanda, with its history of strong execution and industry leading pipeline is in a prime position to take advantage of the strong secular growth trends in online gaming in China.” Needham has a buy rating and $45-dollar price target on SNDA. Another bullish note for Shanda is that Citadel Investment Group sees upside potential. Citadel is a $20 billion dollar Chicago-based hedge fund founded by billionaire trader Kenneth C. Griffin, and is one of the world's largest hedge funds. Citadel boasts, “Through a combination of world-class talent and the use of advanced technology to support them, we relentlessly seek to initiate and capitalize on change in the global financial markets with the goal of remaining at the forefront of the industry.” Their other top stock picks are Apple and News Corp. So we have an increased buyback plan, record third-quarter earnings, a buy rating, and a legendary firm owns the stock. It may be time to add Shanda to your portfolio.

And finally we have Multi-Fineline Electronix making this week’s list. The circuit board maker announced that its board approved a 2.25 million share repurchase program, representing 9% of outstanding stock. This buyback could add 2 to 3 cents per quarter earnings. The stock jumped over 30% after news of the buyback hit Wall St. Needham research has a buy rating and a $19-dollar price target. Analyst Richard Kugele said, “While the macro environment remains a concern, we believe the company is well positioned (through strong customer relationships with RIMM, AAPL and Sony-Ericsson) to weather the downturn. A well-timed stock buyback (enabled by solid cash generation) bolsters our estimates and should buoy the stock against dramatic pullbacks early this year.”

$5 mln, prior plan complete

$50 mln, adds to prior plan

3 mln shares, prior plan complete

5 mln shares, adds to prior plan

383,116 shares, 5% of outstanding