RE:RE:RE:RE:Buy back or dividendYeah I get what you mean and I agree that paying down the debt is top priority. Short-term however, a share buyback, even if it's just $15 million USD/year, could translate into 750,000 shares bought back at the current price (about $20 USD). It's not much, but it would reduce the SO and drive the price up instead of down. Buying back stock on a regular basis could drive shorts away. The shorts would probably spin it as a negative, you're right, but there comes a point when they're basically just talking to each other, because those who really are in the stock long-term simply decide to ignore them and not act on their ''advice''. Spinning this into a negative may not work simply because it's generally perceived as a positive. What could they say '' They cut the dividend to buy back shares, something must be wrong, we want our dividend ?''. Nobody cares about this dividend except, and forgive me for being a cynic here, the management maybe. How much do they net from this per annum ?
wordless wrote: Their dividend amounts to approx ~$15milUSD per year... Although I don't disagree with you, cutting the dividend now would give shorties more ammo that this is a 'distressed' Company... What they can't afford a messily $15mil dividend anymore? At this point, they should stay the course. No matter how the spin a stop in the dividend, it will likely be viewed as a sign of weakness (at least in the short run).
WillyWally wrote: I'd personally focus all available cash on the debt first. Forget about dividends and share buyback.
CNInvesting wrote: It's actually a crime that the company is paying this pointless dividend right now instead of buying back its own shares when they're so cheap. It makes absolutely no sense.
grox01 wrote: I would like to see CXR switching the dividend to buying back shares on the market when the p/e is under 7.
I believe their is great value for the company to buyback it's own shares at great discount.