RE:This boardAkibaLeisman wrote: In terms of short term stock price movements and drawdowns, I don't particularly care what happens on any given trading day. Up until a few days ago, I didn't think our stock was particularly weak vs. the industry. That probably changed a bit on Thursday, so our antennae are up wrt the NCIB now (although we will be information restricted for the next few days until our next PR comes out).
Akiba - I'd appreciate some colour here. The quoted text suggests that your decision to trigger the NCIB depends on the relative valuation of MKO vs peers, whereas I would expect the price trigger to be based entirely on your internal estimate of intrinsic value. Considering relative valuation makes a lot of sense for short term trading but I don't understand its relevance in the context of your long term capital allocation strategy. For instance I would hope that you'd go as heavy as possible if MKO trades down to a ridiculous expected FCF yield, regardless of what the broad sector is doing. Similarly you've said on CEO.CA that you were formerly a trader and would buy with the NCIB when people least expect, or something to that effect. This also had me scratching my head.
Am I missing something? Or perhaps I'm misunderstanding your comments? Thanks!