RE: RE: Not good
Money: Yeah, a closer examination of the full release indicates that Yellow is making some very nice progress, including this little gem. They are using some Trader proceeds to potentially buy up to 10% of the common float – with no negative connotation for dividend payment. This should be interesting for all those U.S. naked shorts who are on the hook not only for divvies, but now face the prospect of a share price buoyed by a share re-purchase. We'll see. Here's the re-purchase part of the Yellow release:
Normal Course Issuer Bid
Yellow Media inc. intends to implement a normal course issuer bid for its common shares and first preferred shares, series 3 and 5 and to renew, upon expiry, the current normal course issuer bid for its first preferred shares, series 1 and 2 through the facilities of the Toronto Stock Exchange, subject to acceptance by the TSX.
The Company plans to purchase for cancellation up to but not more than 10% of the public float of the common shares and of each such series of first preferred shares outstanding.
The Company believes that the current trading price of its shares does not adequately reflect business fundamentals and future prospects of the business. The share repurchase will be financed through the proceeds from the sale of Trader as well as free cash flow in excess of dividends. The Company expects it will be immediately accretive to earnings per share.