RE:Ask yourself, is this is real?What risk? The risk of making another 100%?
Oooo scary kids.
Try to remember that some of us "bagholders" are holding bags of cash and earning great dividends too! Soon to be increased yet again.
If you like other names go buy them and talk them up on their boards.
Their board members will appreciate it. We don't appreciate you. You're a clown.
Happy Halloween Clown!
GLTA longs
MyHoneyPot wrote: Companies like POU and TOU have zero net debt, and small realitive share floats when compared to ARX, yet these are not getting rerated. The only people getting rich here are the management of these companies who
don't have to pay shareholders
don't have to grow production
don't need a strategic plan to expand the business and create value
They only have to buy back shares, and tell the shareholders they are returning all the capital to them. It really is a brain dead approach and management teams hire companies to do their share buybacks, because management do not want to be accountable for doing a poor job.
Really what is the point of holding a company where all your upside is driven by share buybacks because they are going to keep their production flat. How does that make one company better than another, they are just going to take all their FCF and buy their own stock with it.
The reality is that for companies like POU where close to 50% of the stock is owned by insiders, and there is only 70 million shares free trading, it becomes difficult for people to invest in the company. Large funds that need liquidity and the number of the shares is not material as long as the company is valued properly.
So POU has not rerated why? no one can answer this question.
They will not get rerated until they return meaningful capital to share holders in cash.
POU are not focusing their efforts on a magical share count, a debt ceiling, or a measly dividend that management will theoritically keep paying even with negative commodity prices. These are all lies.
When companies start paying out meaningful dividends becasue the management is doing an exceptional jobs the stock will get rerated. Should the stock just trade at a value that is equal to the value of shares management buys a month. What if gas drops back to 3 dollars and ARX can only buy back 1/3 of the stock it is buying today, the share price will collaspe and so will the buybacks.
So where does that leave the shareholder, you need the opportuninity to make hay when the sun shines, and these Spread sheet jockey's tell you they have the answer, they are wrong.
Share buyback are stupid, and if you have 20 years of reserve, and you know you next five year you need to maintain production, then lay everyone off and accelerate the process.
When will a rerating occur for ARX, while when will it balance sheet be as strong as TOU, 3-4 year from now? never?
Spread sheet jockey will promote you company on day like ARX was supporting CPG just a few weeks ago and not they have liquided thier position in CPG
You want to believe in a company based investment thesis that is based on a plan to improve efficiency, grow revenues, and manage the company in a responsible manner.
Management should feel an obligation to pay shareholder cash that reduces their risk of hold the stock and does not add to that risk.
These sharebuybacks without a rerating just make your risk of holding this equity higher, because you are really not getting paid.
IMHO