RE:RE:RE:get rid of long the term Debt ??
firecracker74 wrote:
Trevali paid off $38M in debt during quarter 4 and they are scheduled to pay off $34M in 2018 and $40M in 2019 so debt is not a factor. It is HIGHLY unlikely that TV would consider a share buyback anytime soon. They just issued 400M new shares at $1.20 and it would make no sense to start buying back those same shares at prices above $1.50. That would result in huge losses for shareholders. I would favor a .01 quarterly dividend that would cost $34M a year and would support the stock price. Keep in mind that this was all Glencore's idea. They wanted to create a zinc monster and Trevali is that monster. Glencore is going to want to grow Trevali. They can grow organically now by expanding production At Rosh Pinah and Santander. Then they can look for acretive acquistions after that. They just now have more cash than debt so it will take a little time to build excess cash.
I'm all for a quarterly dividend "program" along the lines you propose, jsut not a 1X "special dividend". Disagree about share buy backs at $1.50 being "loss for remaining shareholders". Its not registered as an accounting loss ... becasue its not a loss, its an investment in your Co's future by reducing liabilities ( outstaqnding shares). Those GLEN deal shares you speak of are out and sold at $1.20. Its yesterdays news. Any future buybacks will be done at the market price on the day, whatever that might be. What that price is is largely irrelevant ... sure you'd prefer to do it at a relatively low SP point so your $ takes out more shares for the same bucks but ... the main reason for doing buybacks is to reduce float, thereby increasing EPS and SP long term for the remaining shareholders. You certainly don't wait for ages to do it while sitting on piles of cash in an environemnt where your stock price is likely to do nothing but go up .... then it just costs you more to do it down the road.