How Can Management Increase Market Cap...
- The Forward Guidance suggests that EDV has an EPS of approx .23 per share.
- The P/E currently sits at 2.9
What should a company do in such a scenario. Here's my opinion of sending a 'Message" to the market.
1). Do an immediate share buyback at these "ridiculously" low level. It is a no brainer that a share buyback is implemented when P/E is sitting at less than 5.
2). In case of EDV, the buyback should be at least 50% of the O/S shares, which means bring the share float to approx 200 million.
3). Set up a debt repayment plan in place and get rid of the debt over the next 5 - 6 years.
4). Put all CAPEX on hold till Gold goes back above 1400/oz. Just stick with the current production of 400,000 oz to service the "share buyback" and "debt repayment".
5). Use the "Gold Put Options" strategy to hedge price below $1250/oz till the "share buyback" and the "debt repayment" goals are achieved.
- At a net income of 95 million per year, EDV can easily manage to do both in a span of 5 years.
I wonder if any EDV management or PR reads "Stockhouse Bullboards"
LOL !!... Cheers and GLTA.