Clifton Star Res Inc CFMSF

Why not a Clifton Star stock buyback?

[CSIGroup]

Clifton Star Resources previously announced that as of March 31, 2015 it had $13.4 million of cash assets in the bank. This worked out to about $.29 a share at the time. Since then they have been reviewing many dozens of projects. We are led to believe by the silence that nothing met their standards, that in the many months that have passed by there have been no projects that would be a good new direction for growing the company. If that really is the case, why not consider a share buyback? At .15, The stock is trading at roughly 50% of its cash value based upon the original liquid asset numbers. Of course, the $13.4 million figure needs to be revised downward to reflect substantial management and directors compensation and typical corporate expenses. Still, a stock buyback would: 1. give something back to long-suffering shareholders; 2. provide support for the stock price; 3. allow shareholders who have to sell stock to be able to sell without pounding down the current bid; 4. provide symbolic benefit; 5. show leadership in a market where stock buybacks are rare and other junior exploration companies are mostly in defensive, cash-poor survival mode.

Would a stock buyback be expensive? Not really. Buying one million shares in the market would only cost the company $150,000 at current prices. Two million shares would only cost $300,000. This is a drop in the bucket relative to Clifton's liquid assets. Clifton could announce a buyback of "up to" 5% -- perhaps 10% -- of the company stock. As is always the case with buybacks, they would have the prerogative whether or not to purchase the maximum amount of shares. They would always have flexibility. After failing to renegotiate the Duparquet project option, and with a stock price that could easily head lower, Clifton management badly needs to demonstrate leadership. A stock buyback would be good for shareholders.