RE:NO buyback for FCF, high yield & debt reduction & growthDilutions increase the size of the float and has adverse impact on the share price. Share buy backs the opposite.
If you see the price history of CJ it use to the a $10 to $20 stock. A mart management would have diluted when the stock was above $10 for acquisitions.
What does this management do is dilute the stock at all time high. If the management does not respect the share price of the company why would investors. Company priced the stock at $5.50 and diluted it. The market punished it and took it down further.
They should have used all debt for acquisition. A convertible denture was one option.
With the present level of debt the best use of money for the company is repayment of debt and not buy back. Then increase production. When a company is loaded with cash & the share price is rock bottom then buy back should be considered.
Vast number of companies announce buyback programs that is about 10 % of the float but never use it.
I do not think that this management understands the importance of keeping the float tight. I find tem even reckless in this area. I have little respect for managements that dilute when the stock hits rock bottom.
The sale agreement (PSA) to acquire an additional 10-per-cent working interest in its operated Midale unit for $22.5-million. The acquisition, was expected to close on Jan. 2, 2018, will be financed through the payment of $11.25-million in cash and the issuance of 2,314,815 Cardinal common shares.
If these 2.3 million shares come to the market immediately will be sold for less that $5.00. Now another thing if there is a hold on the shares then the sell can always short the stock.
Maybe the seller of property has already shorted the stock.