Next on the list is Tektronix. The Beaverton, Oregon based Tektronix recently added $350 million to the company’s buyback program. The addition will bring the overall total to $691 million or 20.5 million shares which represent 26% of total outstanding shares. To finance the buyback, the company will use $358 million available cash on its balance sheet, along with $128 million in free cash flow it has generated over the past year. For additional financing, Tektronix plans to sell $300 million worth of convertible notes. The maker of tests and measurement equipment also recently issued its 6-cent quarterly dividend.

Tektronix saw mixed results in the fourth quarter as revenue rose 3.2% but profits fell 12% due to costs that outweighed sales growth. On a positive note, the core instrument business was up 3% and operating margin improved a percentage point to 16.4%.

Though Tektronix experienced a tough 4th quarter, analysts at Thomas Weisel Parter still find the valuation attractive. Analysts maintained their “Outperform” rating and raised the price target from $37 to $39 with the following thesis, "TEK appears well-positioned to benefit from its rich portfolio of products and solid new product pipeline targeting expanded addressable markets. Despite volatility in its communications test business, we expect an improving trajectory in key metrics through FY08, and solid growth and margin expansion through FY09.” They continue, “We expect improving metrics over the next several quarters to drive acceleration in earnings growth and a multiple expansion for the stock.”

Tektronix recently announced a $350 million dollar buyback which adds to its prior plan.

Tektronix, Inc. engages in the development, manufacture, marketing, and servicing of test, measurement, and monitoring solutions to customers in various industries worldwide.

The stock trades for a 16x PE.

Downgraded by Needham & Co from Buy to Hold

Beaverton Oregon - home of Coffee People

UP 16% past 3 months

Momentum + good quarter = huge profit

Upgraded by JP Morgan from Underweight to Overweight

Downgraded by Robert W. Baird from Outperform to Neutral