RE:RE:RE:Turning point...dllscwbysfn wrote: I don't agree Johnny. I think at a drop of the hat they could stop buying shares and start paying off more debt without any vote. If they can go out and buy Ranger without asking then they can do as they please.
Some may not like it, but too bad, so sad.
JohnnyDoe wrote: red2000 wrote: Paying Long Term Debt or Buyback shares ???
Answer of Eric Greager CEO...
say Nov. 3rd about Actual S/P :
''Our shares are undervalued, Avg. forecast of analysts is a good metric (no time frame)''. So for me, 8$ CDN Seems the signal to paid more LT Debt faster and Div. 
Feel free to comments !
What is your S/P signal ?
Paying debt faster isn't really going to happen Red. They've got a return to shareholders framework of 50% of fcf.
The question was asked in the context of paying debt versus buybacks. If the shareholder returns commitment didn't exist, there'd certainly be debate about the most prudent use of funds. Eric's answer was he's getting better value buying shares because the shares are more undervalued than the interest on the debt.
But there's not going to be a point where they look at the piles of cash going to buybacks and say "we're better off paying debt" because if that happens, they're violating the returns commitment and that's probably not a good idea.
Buybacks are part of the shareholder return which is 50%. I suspect to suspend buybacks and pour it all into debt, they'd poll the shareholders for approval to violate the returns commitment.
Once the float gets to < 750M, personally I'd be good with driving the debt to zero and suspending returns to do it. But I'd want to be able to vote on a clear proposal
I think making an acquisition and altering a well publicized return policy are different
On Ranger they acted and kept it quiet. If you publicize your intent, you run the risk of running the price up and possibly being out bid.
And the dividend is a minority percentage if the return. They certainly can divert the buyback money to debt but i think doing so would cause a ton of selling pressure due to lack of investor confidence
I dumped wcp the day they announced their acquisition. They'd been making a big deal out of their return policy and changed course.
Cpg i held (still hold) when they acquired. But i saw that coming
Bte i didn't see coming but it was a new ceo and i liked the deal metrics. He wasn't the ceo that established a debt number, Ed did. Now that we have a target and plan, i remain invested because i like the plan. But if they change that plan, I'll dump the day of the announcement.
They have not said what they'll do with the fcf not going to shareholders once the debt target is achieved. Perhaps there will be another acquisition. Cross that bridge then.