Motorola announces $1.2 billion stock buyback

After announcing excellent quarterly results of 32 cents per share just last week, the U.S.-based telecom and wireless giant is again at the top of its game under CEO Ed Zander. So much, in fact, that Nokia -- long the #1 wireless handset maker in the world -- again sees Motorola in its reaerview mirror. Motorola's famed RAZR wireless phones and the newer Q smartphone powered by Windows Mobile and sold by Verizon Wireless is making the telecom juggernaut hot once again.

So, it comes as no surprise that long with an excellent quarter -- with profits up an amazing 48% -- Motorola announced today that it will be buying back up to $1.2 billion of its common stock to boost share price, along the lines of a previous $4 billion plan to buy back stock in increments. Motorola will be retiring the shares once it has bought them back, enhancing its share price by this time next year at the latest I would think. With MOT shares currently at $21.38 per share, and with roughly 2.49 billion shares outstanding, this upcoming $1.2 billion piece of the buyback will reduce the outstanding MOT shares by about 56 million.