RE:RE:RE:RE:RE:RE:RE:NCIB is now 88% complete, SIB on the way?Committing to a what dividend will put pressure on the company’s cash flow and its ability to manoeuvre comfortably in the future especially that the short sellers are hiding at every corner. If they really have to get rid of their cash (pressured by some major shareholder) a special dividend would be better than committing to a monthly or quarterly dividend since once once you announce it the dividend becomes a KPI that ties your hands and future moves.
Since the gap between book value and the stock price is too wide and can be measured in dollars a dividend in cents won’t make a dent so I think that they should keep buying back by renewing the NCIB and stacking some more cash for growing the business, strengthening their balance sheet ( cushion for potential loan losses) and why not a dividend after that. The way I see it as long as the price is below $26 they should keep buying back because it is accretive and the company doesn’t to work very hard for the added value.