The plan was first announced back in July, but Universal Delivery Solutions (UDSG.PK) has officially begun their stock repurchase plan. The company formally released the news early this morning, citing the same rationale and benefits discussed in the July press release.

Specifically, the company believes their shares to be undervalued relative to their growth forecast. Rather than just paying lip-service to the notion, UDS is putting money where their mouth is. A buyback plan will not only pressure stock prices higher because of greater demand, it will also make the float less diluted.

If UDS buys all 10 million shares mentioned when first publicly announced, we estimate the number of outstanding shares will be somewhere around 171 million.

Though the process could take several days - if not weeks - to complete, we view this as a positive event for shareholders.

To review today’s news release, click here.