[etjossem]

Absolutely. It's a low-risk move that reduces the number of shares rather than increasing earnings. But it follows (if the leadership of company you bought is rational) that they've decided there aren't enough organic investments or good M&A prospects to make a full deployment of their cash worthwhile. They are effectively giving the money back.

If you invested because you believe in the long-term growth prospects of the company, then you expect them to plow their cash into increasing the top line, and a buyback can be a disappointing signal. If you invested because you believe it's a good income stock, a buyback is exactly what you want.