RE:RE:RE:RE:RE:Special dividendMatlock wrote: I agree with you that it's difficult to establish a significant position in Algoma, although you've got some underlying facts wrong....
This stock is already very, very illiquid, pre-NCIB.... average daily trading volume is just ~3800 shares (on a float of ~38 million shares, this is just 0.01% traded daily). The NCIB is unlikely to impact this considerably. Furthermore, the NCIB limits Algoma to buying 25% of the average daily trading volume each day... at current average daily volumes, a whopping 1000 shares. Over the full year, at most, they could buy back 252,000 shares, or about 0.6% of the float.
Talking myself through this post, I wonder if perhaps the special dividend is in recognition of the fact they are quite limited in their ability to repurchase shares, given the low trading volumes and NCIB rules.
Very good points. Thanks for clarifying the impact of the buybacks. As you say they were already very illiquid.