Cummins Inc., one of the world's largest suppliers of diesel engines, recently declared a two-for-one split of its common stock and said it will repurchase $500 million in shares. Wachovia's Andrew Casey backed his "Outperform" rating and $148 to $151 valuation range for Cummins stock, calling the two moves good news for the company's shareholders. "(Tuesday's) share repurchase announcement appears to reflect the company's confidence in its future cash generation potential," Casey wrote in a note to investors. "We view the announcement positively." CMI trades for 9x cash flow.

L-3 Communications Holdings Inc., a military contractor specializing in aircraft and communication products, said recently its board approved the repurchase of up to $750 million of common stock over the next two years. The new program is in addition to a previous program approved in December 2006 for $500 million over two years. L-3 expects to complete that authorization by the end of this year. LLL trades for 10x cash flow.

Electronics and computer products distributor Arrow Electronics Inc. said Tuesday its board of directors authorized the repurchase of another $100 million of common stock. The buyback is in addition to the $100 million of common stock authorized for repurchase in February 2006. The company also recently raised its fourth-quarter profit guidance. The stock trades for 7.5x cash flow.

Last week, we had a buyback announcement from Cheesecake Factory (CAKE) that I believe makes the stock look pretty tasty. The repurchase authorized last week was for another 5 million shares of CAKE, taking the total up to 21 million shares. Under this program, the company has already bought back about 13.5 million shares. In the current quarter, CAKE repurchased 2.2 million shares for about $49 million. Although the casual dining chain missed Wall Street expectations in the third quarter, it's still standing tall against the headwind of slowing consumer spending. Early last month, analyst Christopher O'Cull of SunTrust Robinson Humphrey upgraded Cheesecake Factory from neutral to buy, saying that earnings could grow despite consumer spending and cost concerns. O'Cull added that the company had "clearly outperformed the casual dining segment." This year has not been one of the best for the restaurant sector, to say the least. While the sector struggled to get past higher raw material prices and labor costs on the one hand and a surge in gasoline prices on the other, it was faced with the credit crunch. I certainly wouldn't say to ignore the possibility that there could be a continued economic slowdown. However, Cheesecake Factory is positioned in the upscale casual segment, which is less impacted by these spending pressures than its peers catering to low- and middle-income consumers. Analyst Jeffrey Bernstein of Lehman Brothers has an overweight rating on the company and said its 2008 guidance of 22% to 24% EPS growth was a "pleasant surprise." Bernstein added that the stock represented "compelling value for long-term investors." Goldman Sachs analyst Steven Kron said in a note to investors that the company is "fundamentally better-positioned versus peers in the current environment." According to analyst Steve West of Stifel Nicholas, Cheesecake Factory's new Kitchen Management System initiative may be expected to boost operating margins in the future, enabling the company to achieve its long-term operating margin target of 12%.

One way to save time selecting stocks is letting some smart hedge funds do the research for you. An investment fund raising its stake in a company is a good sign. Another is a buyback announcement. AutoDesk (ADSK) is a company that has both of these. Autodesk has announced the repurchase of up to 20 million shares of stock. The latest authorization is in addition to the five million shares remaining under the company's previously announced buyback program. It has about 230.9 million shares of common stock outstanding. The company has been aggressively buying back its shares, having repurchased about 10 million shares in the first three quarters of fiscal 2008 at an average price of $46.06 per share. ADSK's third-quarter earnings soared 46% to $84.8 million, or 35 cents a share. Excluding items, earnings had raced paste Wall Street expectations for the quarter. Revenue was up 18% at $538.4 million. Analysts at Lehman Brothers said in a recent note to investors that Autodesk seems to be "well positioned to benefit from strong global demand and increased 3D adoption." Lehman Brothers has an overweight rating on the stock. Deutsche Bank Securities, which rates the stock as a buy, said that even if there was a slowdown in the U.S. economy, Autodesk would be able to deliver mid-teens revenue growth.

Chemicals maker Cytec Industries Inc. said Wednesday its board of directors approved a new $100 million share repurchase program. The stock trades for 8.5x cash flow.

The Chubb Corp. last week introduced a repurchase program to buy back up to 28 million shares of the insurance provider's stock. The buyback plan covers 7.3 percent of the 383.8 million Chubb shares outstanding on Sept. 30.

The Fairfield, Conn.-based industrial conglomerate said it plans to buyback $15 billion in common stock over the next three years. The company also added that the total repurchase amount could be increased over the course of the program. By the end of 2007, GE will return a total of $26 billion to its investors through dividends and buybacks. Even among extreme market volatility, GE managed to deliver record third quarter earnings. The company announced net earnings of $5.5 billion, up 14% from last year, and EPS of 54 cents a share, up 15% from last year. Revenue jumped 12% to $42.5 billion with organic growth of 8% and global growth of 15%. With major equipment orders surging 39%, total orders came in at $24 billion, beating the same quarter last year by 20%. GE also reaffirmed fourth quarter and full year 2007 guidance. The company expects EPS to grow 14-18% in the 4th quarter, and 18-19% for the full year. In addition, GE raised its quarterly dividend 11% to 28 cents a share. Jeff Immelt, GE’s Chairman and CEO said, "Our portfolio strategy, initiatives, and financial discipline have positioned GE to win in this environment.” He continued, “Because of our strong, globally-positioned businesses, led by Infrastructure, we will grow revenue 10%+ even in a slowing U.S. economy. We will continue to be disciplined in our capital allocation. Our growth plan does not assume any major industrial mergers and acquisitions activity. However, with our cash flow and balance sheet strength, we can capitalize on investor friendly opportunities in this economy." Hillard Lyons Equity Research is bullish on GE, as they upgraded the stock to buy and raised their price target to $44. Analysts Stephen O'Neil commented, "Momentum in the Infrastructure segment appears to be in its early stages. Global revenue continues to grow. GE stock has declined recently, and we feel reflects the difficulties in financial markets. Based on its historic valuation and current prospects, we believe GE warrants a premium to the S&P 500."