Post by
hawkowl1 on Mar 18, 2022 10:04am
Anybody notice Share buyback has stopped
It stopped right after 10% Christopoulos, George declared his position in SXP.
Hey Stewart this is George...Stop buying shares! I am still accumulating.
Comment by
HermannHaller on Mar 18, 2022 2:26pm
Yes, I think you are right. And then GC bought more in February. The company has made a clear commitment to continue the NCIB. I hope they have a good reason for putting purchases on hold at that point. They obviously have a responsility to try to maximize value for all shareholders.
Comment by
Aspertheoldman on Mar 18, 2022 8:49pm
It might be a trade-off between paying a dividend and buying back stock
Comment by
Capharnaum on Mar 18, 2022 10:38pm
Also, I don't think it's bad that they keep their buyback cash for share price dips.
Comment by
HermannHaller on Mar 19, 2022 2:33pm
Management already reaffirmed the plan to buy back shares after the dividend was announced, so no trade-off is being made here. Also, the stock is trading at only 6x earnings. If after announcing plans to continue with the NCIB, they somehow decide that at 6x it is too expensive, and they should wait for a better opportunity, that's negligence.
Comment by
Capharnaum on Mar 19, 2022 3:01pm
Well, there's a point where the tradeoff to buying back shares is that you don't use that capital to grow the business. When it was under $3, I think it was a no brainer. At current price, I could see why using the money to lower risk (reimburse debt) or to grow (either through capex in current installations or by buying up other assets) might make more sense.
Comment by
HermannHaller on Mar 19, 2022 3:20pm
I don't think they need to reduce debt, and based on management's comments on the conference call, they don't think so either. But I agree they could be working on an acquisition, and that might be a good trade-off.