Cathedral Energy Services Ltd T.CET

A Key Difference - Buybacks

[auburn2]

Strong performers like PHX, TCW, and now HWO have had one thing in common besides impeccable balance sheets: stock buybacks. That said, I bought Painted Pony during the 2008-2009 crisis in January, when I paid $1.40. The stock went down to a low of $1.00. I called the CFO at the time and asked about buybacks and was told they wouldn't be doing any. Nevertheless, the stock turned, and began marching to $2, then $3, $4, $5, and all the way to $10, exceeding previous highs. No buybacks were involved.

[Adonis1411]

TSX rules on share buybacks on a Normal Course Issuer Big (NCIB) generally allow you to purchase no more than 10% of the 3 months average trading volume on a given day. CET trades about 50,000 shares / day over the past 3 months. 10% of 50,000 = 5,000 shares per day and @ $0.16 per share = $800 per day If they bought the maximum every day for 250 trading days in the year, they'd buy back