GREY:LSTMF - Post by User
Post by
moltingon Nov 14, 2014 4:39pm
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Post# 23131139
Bonus of buy back
Bonus of buy back
The pool of trading shares is much smaller than the total number shares out there. As LTS reduces this pool it will increase volatility as there will be a fewer buyers if you want to sell and fewer sellers if you want to buy. When the price of oil starts to come back up and LTS moves back to a more reasonable valuation, the move up will be accelerated by the smaller number of available trading shares. I would guess that a 10% buy back would reduce the rapid turn over pool by 25-50%.