Americas Gold and Silver Corporation T.USA

U.S. Silver share repurchase

[BCStock]

U.S. Silver open market share repurchase (share buybacks) is one way wealth could be shared with the shareholders. While we wait patiently for the latest financial results to be released, let’s look at a possible scenario where theis now flush with cash and, like their shareholders, are frustrated with the current low share price. What do you do when the open market fails to recognize the company’s true value? Maybe the best option in a market that undervalues U.S. Silver and over-discounts it in a generally slumping economy is to invest back in the company using cash to buy back their own shares. The announcement itself that the company intends to buy back stock often boosts the share price, as it indicates management is seriously concerned about the undervalued shares. Frequently shares bought back by the company are cancelled to reduce the float in circulation. Return on Assets (ROA) and Return on Equity (ROE) increase, which the market will note as being very positive. Fewer shares on the open market mean you the shareholder now own more of the company.