Agilyx Ord Shs AGXXF

I've seen this many times and the story does not end well!

[mountainpose]

A company should (almost) never buy back their own shares. The message is that there is nothing they can or know how to do to improve efficiency and productivity. So I ask, why would anyone self declare that they are not doing very well now, and then make a sizeable investment in themselves, without doing a darn thing about making themselves better? Much worse is not having the money to do so. The "Encyclopedia of technical market indicators" (Bryers and Miggs) did an analysis of share buybacks and found a negative correlation of an average of 13% decline in those shares within 9-12 months. It's a foolish move folks. And they must now get it right at all costs or the class action lawsuit I mentioned in my last post will become a reality. I want to buy the shares, however I really don't like the tone of this message. I know management means well but this a weak move. I'm going to wait for now. I'll pay a higher price if I need to. I want to see a sign that AGT is a manageable company and not just a commodity swinger. GLTA

[FauxReal]

What a bunch of BS. 

[Ropeadope121231]

Hoping for a special rights offering, I totally support this amazing Canadian company!

[mountainpose]

Please! Thats crazy. For most of the 20th century, stock buybacks were deemed illegal because they were thought to be a form of stock market manipulation. But since 1982, when they were essentially legalized by the SEC, buybacks have become perhaps the most popular financial engineering tool in the C-Suite tool shed. And its obvious why Wall Street loves them: Buying back company stock can inflate

[gairvine]

Interesting read....much appreciated.  I’m trying to remember if it was Buffet or Peter Lynch who said essentially the same thing.  Share repurchases seem to create a short term floor under the share price, but as a shareholder ( not in AGT at the moment ) I generally like to see cash reinvested in the business or returned to shareholders.  You mentioned at the end of your post that

[Freezerburn]

When does the story end?

[gmarx6562]

in my opinion, they do not have the free cash flow to support the dividend and a share buyback so something has to give...i think the dividend will be cut or eliminated.