GREY:ALARF - Post by User
Comment by
craighenryon Sep 30, 2017 3:08pm
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Post# 26762771
RE:RE:RE:RE:Steve King : Initiate a share buy-back
RE:RE:RE:RE:Steve King : Initiate a share buy-backTickerTwit wrote: The company can do little about shareholders who are willing to sell low.
Share buybacks (NCIB) do not raise share price. I've watched NCIB's in place for several stocks I own. They have never returned value to retail shareholders, who ignore the NCIB and continue to sell low.
NCIB's give value to management through increased ownership via treasury-issued share-based compensation -- the NCIB buys the shares, cancels them, and reissues them to management. This is an equity flow from balance sheet to management, the most widespread structured scam I've ever seen. Completely legal, but against shareholders' interests.
The reduction in dividend payout is tiny compared to the cash draw from the balance sheet. No informed investor should ever be wishing for an NCIB. Most senior managers are well-enough paid, why give them even more?
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BSdetector2016 wrote: He's got to try something different; current strategy means share price is stuck in neutral and subject to psychotic price movements. I'm losing patience with this boat anchor stock as I am sure the vast majority of holders are. I know "the dividend is great" but what about the capital destruction?
maypeters wrote: Steve has already indicated that if they changing new opportunities and partners generating 15% IRR then they will not use the money to buy back shares.
No point in buying back shares and raising capital through a new issue.
At least no DRIP in place.
BSdetector2016 wrote: Retire some of the float and the dividend that those shares pay, and increase the share price now.
"Stock buy back on several stocks I own".......yeah tickertwit?? What stocks are those?