Physicians Formula Plans Stock Buy Back

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Cosmetics maker Physicians Formula Holdings Inc. said late Thursday that it will buy back up to $10 million in shares.

Since reporting weak second quarter earnings last month, Physicians Formula’s share price has dropped 41 percent. “Our board believes that at the current stock price, our stock is undervalued based on many criteria, including the long-term growth prospects for the company, and that the repurchase program is an effective means to increase shareholder value,” said Chief Executive Ingrid Jackel in a statement.

The Azusa company’s wholly owned subsidiary, Physicians Formula Inc., will borrow the money for the repurchases from Union Bank of California.

The company had 14.1 million shares outstanding as of Aug. 8.

In Friday morning trading, shares jumped 65 cents, or 11 percent, to $6.59 on the New York Stock Exchange.

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