RE:they should baranja wrote: be buying shares instead of debentures. it wold be cheeper, it would help share holders and it would benefit all investors in this company. that would be win win for all. is shares are cheeper, buy shares, if debentures are cheeper, buy debentures.
That makes perfect sense baranja - buy whatever is cheaper. They've never paid more than mid US$70s for the 2018 debs, nor mid $US80s for the 2020 debs. The 2018s last traded at $68. So when you consider the interest burden that's eliminated when the debs are bought it isn't hard to see why the debs have been the primary focus. The stock looks cheap too. But just $50,000 put into a stock buyback would move the SP up a level. So even if they were doing a stock buyback it would soon get expensive if they did it very aggressively.