VET still hasn’t utilized its NCIBTell me if I wrong but VET still hasn’t utilized the normal course issuer bid (NCIB) since it was announced in August. Initiating a NCIB is primarily done because a company feels its stock is undervalued to the point that a company believes at least a portion of its capital is best used to buy and retire a percentage of its stock.
So why hasn’t VET spent a penny buying back it’s stock? The stock price has only dropped further so shouldn’t it be even a greater bargain? Below are the possibilities I can come up with. Please offer your own.
1) It was simply a gimmick. VET never intended to buy and retire its stock but wanted to send a message that its stock price is cheap.
2) VET doesn’t have the capital available to buy and retire its stock. Capital quickly became more scarce after the announcement in August.
3) VET no longer believes its stock is cheap.
4) Some combination of the three possibilities listed above.
JMHO. GLTA.