RE:RE:Michael Blair is a fool and a shorter...I agree that calling people fools for commenting on or passing on information is counter-productive to the purpose of this board. If you already know it all then why are you here?
I happen to like buybacks especially if they can execute at low or undervalued share prices and agree that it can put a floor on the share price while outting a stick in the eye of shorters.
I certainly believe that they should always have an NCIB in place the old addage being walk softly and carry a big stick. When the share price drops below a 10% yield swing away as that is how much CJ saves on dividend payments from that day on.
I look at shares like debt and we as shareholders the creditors. If paying down debt makes sense then buying back shares should too. I was pretty sure I read that CJ's management said that the cost of servicing the debt was equal to paying the dividend so depending on which costs more at the time that is the one that should be reduced.
I am not that worried about management taking CJ private. The NCIB has nought back 2% of roughly 15 million shares that is allowed to. At that rate they won't compkete the NCIB in a year and they would need 5 years of NCIB at that level (which it can't be because they only allow 10% per NCIB usually) To bring management to 51% of the share float. By that time the EPS would double as would the share price and a 20% premium on that double would be okay with me on top of all the dividends. 5 years from now divesting may have to be looked at anyway.
I appreciate most of the comments on here (the obvious bashers aside, not what sure they are about but I don't mind fair and honest criticism), and hope they continue but a certain amount of civility and respect would be nice especially if you want it back in return.
GLTY and all longs
MikeNewTrader11 wrote: I appreciate your point of view but you do not need to preface it with fools.
I have been long on Cardinal for several years. I would suggest you look at insider share count and those that Mr Edwards hold and look at that percentage total. Every share bought back increases that percentage. At 51% they give all off us a 20% premium on the current share price, they go private and good bye to your almost tax free dividend and say hello to Canadian capital gains. When private, no reporting, no filing, .......
Eric Nuttal would be in his prediction heaven. My opinion only.