Share repurchases for cancellationThats the way, 5k a day. Nice to see that the company is taking advantage of the discount currently occurring.
Those shares will not be seen again so buyers will have to bid up at some time if they want to get a sizeable postion in 49 North. With so much in the pipe the price should not be where it is.
| May 03/10 | Apr 30/10 | 49 North Resource Fund Inc. | Direct Ownership | Common Shares | 38 - Redemption, retraction, cancellation, repurchase | 10,000 | $2.380 |
| May 03/10 | Apr 29/10 | 49 North Resource Fund Inc. | Direct Ownership | Common Shares | 38 - Redemption, retraction, cancellation, repurchase | 5,000 | $2.360 |
| May 03/10 | Apr 28/10 | 49 North Resource Fund Inc. | Direct Ownership | Common Shares | 38 - Redemption, retraction, cancellation, repurchase | 5,000 | $2.370 |
That is a good investment keep it steady with the repurchases. Repurchases increase shareholder value with the current discount to NAV per share. Special dividends decrease or are neutral to shareholder value since all you are really doing is taking money from one pocket and putting it into the other pocket. The special dividend payment reduces the asset base but if the share count remains the same then the NAV per share goes down the exact amount of payment. Also the special dividend will cause a tax trigger for holders which reduces the effect of having a special dividend even more. I dont think that most people that purchased this stock or are currently purchasing it are buying it for a special dividend. Most investors are only seeking capital gains and/or companies that might become regular dividend payers, but not a special dividend. If you really wanted to return capital to investors then just announce a tender offer for 10% of the shares at a price 10% higher then current prices and allow holders to tender up to 10% of their holdings in the company. That would solve all the issues. Not sure if I would even tender any since I would just have to buy them back anyway. Heck for $30mill someone could buy the whole company today at $2.50. Fine then at $38mill you could buy it all at $3.00 then sell any non performing assets, eliminate loans, reduce operating costs and focus on a few projects and still have millions for free. Oh well $3.00 soon enough I suppose.
The purchase of Allstar is looking pretty sweet with all the trouble with oil production that is on the way in the USA.
They should be getting prepared to have a well drilled soon if they have the permits I am hoping.
That gold mine property they are dewatering should be exciting with the high grades and high gold prices, wow.