Ainsworth Lumber Co Ltd ANSBF

louel re:WEF

[mapmaker]

WEF just released that they are buying back shares and stated a 2c quarterly dividend. This is because significant new cash flow.
I was curious what you thought of this louel.

At first i was quite impressed and thought i missed the boat. Then i checked WEF financial statements and say they only have 18M in cash and wondered where this 100M is coming from. Then i saw it in the statement, "
In conjunction with these distributions, Western completed certain amendments of its revolving term loan and credit facility, which had total combined availability of $197 million as of March 31, 2013. Adjusting for the Bid, the Company's net debt at March 31, 2013 would have been $95 million, or 1.3x trailing twelve month EBITDA as of March 31, 2013. In addition, the revolving term loan has been extended to 2017. The Company anticipates repaying the debt from operating cash flow and the sale of non-core assets. "
so it seems to me, they are just borrowing money to buyback shares.
I also saw, they have earnings of 3c per quarter and are instating a dividend of 2c.
All this while. lumber prices are diving and infrastructure is crumbling.

I was going to post this on the WEF board but everyone seems to have dollar signs in their eyes.

i just don't understand.
Disclaimer: i own no WEF and will not be buying any WEF.