MERUS LABS INTERNATIONAL INC T.MSL

Share buy back good or bad ?

[turr]

On June 30/2016  Merus labs paid $8 million down on their term debt.
On July 4/2016 Barry Fishman said this

   The fundamentals of our business are continuing to perform as expected and support our ability to generate strong, predictable cash flow" said Barry Fishman, Chief Executive Officer. "Our healthy free cash flow provides the Company with several strategic choices - rapidly paying down debt, acquiring more assets, declaring dividends, and/or executing on our share-buyback plan" 

The share price at the time was $1.70.....  Looks like they may have chosen option ;d'  share buy back plan and for good reason . They are buying back shares at a huge discount to  the intrinsic value of the stock. They seem to have more cash coming in than they know what to do with. Sorry they do know what to do with it. They know how to make money and take advantage of every opportunity from buying companys to buying back stock at discount prices. Very impressed with management and board. This company will be worth much more than $1.30/sh in a year or so. Just my opinion though.     
   

[turr]

Question is what will they do with those shares the company is buying back? 

[gibbonsj]

did I miss a NCIB announcement? If not then it's insiders buying for their personal holdings.

[turr]

Gibbons I haven't seen  NCIB and I've been looking since you mentioned it. We were assuming that it was a buy back because there has been no reports make by insiders personally over the past couple of weeks. (Fishman said in an earlier news release that a buy back was an option) The last week in Aug. insiders were buying but they offically reported  within 2 or 3 days.  TMX

[FordVictoria]

I have a small position in MSL that I am planning to increase in any deep of the sp. When companies do share back plans, they cancel the shares they buy so they increase value for the Sh, smart management also will do a share back and after place a divident plan so they will save the divident in all the shares they cancelled, having less shares and with divident,  the upward pressure on the

[trivela]

From the July 4 news release: ""Our healthy free cash flow provides the Company with several strategic choices - rapidly paying down debt, acquiring more assets, declaring dividends, and/or executing on our share-buyback plan"