Zix Corporation (NASDAQ:ZIXI) Enhances Stock Repurchase Plans, Stock Pulls Back

[[tagnumber 0]] [[tagnumber 1]] [[tagnumber 2]]Zix Corporation (NASDAQ:ZIXI) stock price is still moving along the 10–day moving average, showing more short–term upside potential after the pullback. Recently the company announced a new and enhanced stock repurchase program, yet the market did not react positively on the news.[[tagnumber 1]] [[tagnumber 2]] [[tagnumber 1]] [[tagnumber 2]]ZIXI closed the last session at $4.65, or right above the moving average, with a trading volume for the day lower than usual and a small loss of 0.43%. The share price seems to consolidate at the current levels as it has been moving in a very narrow trading range in the last four sessions.[[tagnumber 1]] [[tagnumber 2]][[tagnumber 9]][[tagnumber 1]] [[tagnumber 2]]Even though technical indicators signal a possible draw back towards the center of the trading range, technically ZIXI could climb again higher to the upper Bollinger band later next week.[[tagnumber 1]] [[tagnumber 2]] [[tagnumber 1]] [[tagnumber 2]]On Tuesday, the company filed the resignation of its Vice President, General Counsel and Corporate Secretary James F. Brashear for reasons which remain vague in the statement. Earlier this month, ZIXI announced that the initial $10 million stock repurchase program approved in January will be terminated and replaced by a new $15 million share repurchase program.[[tagnumber 1]] [[tagnumber 2]] [[tagnumber 1]] [[tagnumber 2]]In general, such a measure should send positive signals to the market. The company, based on its insider information, should actually consider its stock undervalued in order to undertake a share repurchase, yet in this c[[tagnumber 20]]ase the signal did not work as it was coupled with a not very unconvincing first quarter report file a few days earlier.[[tagnumber 1]] [[tagnumber 2]]According to the 10–Q, the company has not improved significantly its cash position, thus it is not known how it plans to finance the stock repurchase. There is only a small increase in reported revenue and net profit, no change in gross margin and the working capital available does not leave room for additional costs.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]]