Mamma.com Buying Back Stock

Mamma.com (MAMA Quote) surged 10% late Tuesday after the company filed with Canadian securities regulators to buy back up to 600,000 common shares over the next year.

The Montreal-based Internet search engine company said Tuesday that it would make the move to boost shareholder value and to increase earnings per share. The company said it has some $27 million in cash in the bank and around 12.2 million shares outstanding.

Mamma's shares surged early in 2004 as investors bid up shares across the Internet space, buoyed in part by the prospect of a landscape-remaking Google (GOOG Quote) initial public offering. But the stock sank this summer after the company shifted its focus from organic growth to acquisition-driven expansion, a decision that led Net investor Mark Cuban to dump his stake.

In after-hours trading Tuesday, Mamma.com shares jumped 53 cents to $5.88.