International Petroleum Ord Shs T.IPCO

A natural hedge

[Oldnagger]

In a way , share buybacks are a form of hedging for a company like Ipco. Let me explain.
If the value of what Ipco sells goes down by 10 % , Then revenues will decrease by 10 % and net revenues will decrease by 10 % or more. Yet the share price will fall by an amount commensurate with the net revenues. This means that the cost of share buybacks will fall by a similar amount. So lets take todays numbers Buying back 10% of the shares will cost 13.8 million shares x 11.40 =
157 million $ . So a 10 % savings on share price will save 15.7 million $
Net profit for Q1 was 39.5 million USD so annual profit at that rate = 210 million Can $ 
Of which 10 % is 21 million.
Therefore , the buyback is effectively hedging 15.7 / 21.0 = 75 % of IPCO 's profits
Well theoretically at least 

I am just trying this out as a theory , comments would be most welcome !!

[pennydredful]

You   would   have   to admit    that    their    SIB    at    15.00+   was   a  dumb   move     in   that   NCIB    has been   buying    shares   much   lower.  Happily   for me