GREY:ALARF - Post by User
Comment by
MrEvilxon May 10, 2018 10:26pm
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Post# 28015972
RE:RE:RE:RE:RE:Trading below book value
RE:RE:RE:RE:RE:Trading below book valueCapharnaum wrote: Aspertheoldman wrote: The objective of AD buying buying its own unit at a price below book value is not to support the price on the stock market..
It is rather to create value for the remaining unitholder.
Reducing the number of units increase the book value of the units.
Once eliminated, AD do not have to pay distribution to these units anymore.
It is the same as if AD was buying an investment earning 10.4%.
If AD can borrow at 5% to invest in its own unit earning 10.4%, it makes 5.4% profit
Nice !
They can invest money at 14-15% which is better than 10.4%.
Exactly, the pricing job of market. Alaris's job is to find partners and get returns. The stock price will be awarded as a result. The market is irrational with Alaris and might stay irrational for how ever long, who knows. The buy back I'll not help the price, only news about new deals can. In the meanwhile enjoy the dividends. GLTA