The recent hike in the price of wounded enterprise application integration star New Era of Networks Inc could have been down to early knowledge of yesterday’s after-market announcement that the company will buy back 10% of its 32.7 million shares outstanding over the next 12 months. The move, which should also increase earnings per share because there will be fewer shares on the market, is a sign the company believes its shares are undervalued. Neon says the strategy will enable it to spend some of its $130m cash and securities pile and offset dilution from employee incentive stock programs.
