When the CEO is not Smart Enough
In Eric's mind you should buy back all your shares and he thinks there will be capital appreciation, but is that really over simplistic, and how does that take into account the dynamics of the stock market, interest rates, and the fact we are trading a stock that produces a Commodity, with a war, global unrest, and countries with sanctions?
It just support that case of an incompetant CEO, who does not know what to do when he has met all his debt objectives, and is sitting with a pill of cash in front of him. (Buy back shares, does that really take a lot of strategy or inteligence)
What do the best CEO do that are aligned with share holders, (There are not very many of them)
TOU - Mike Rose, he will only do opportunistic buybacks, otherwise he returns the cash to shareholders in the form of special dividends, interesting idea pay the shareholder and he will want to own more of your stock. Maybe that is why TOU is trading at such a premium in terms of evaluaiton to ARX.
Nuttal says the sell off was a gift to investors, for those already invested it represents a destruction of capital. For a smart CEO is might represent a buying opportunity, but is it not better to let the market do what it does best and value your stock, and allow shareholders the freedom to make an investment decision whether or not to buy the stock.
ARX Management are expert is the destruction of capital, poor decision making and not meeting any of their objectives in terms of projects. (Attachie, Sunrise, ...)