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Pivot Technology Solutions Inc. T.PTG

"Pivot Technology Solutions Inc offers IT solutions to businesses, government, education, and healthcare organizations. It operates through the following segments: ACS, ARC, ProSys, Sigma, TeraMach, Shared services. The company derives the maximum revenue from the ProSys segment which sells storage, server, and IT infrastructure consulting solutions to enterprises. Geographically, it derives majority revenue from the United States and also has a presence in other countries."


TSX:PTG - Post by User

Comment by PatiencePays123on Sep 25, 2019 9:35am
137 Views
Post# 30162395

RE:RE:RE:RE:RE:My Biggest Issue with Last Quarter

RE:RE:RE:RE:RE:My Biggest Issue with Last QuarterDoesn't it make sense for them to draw on their credit line to repurchase shares? At these levels they would forgo paying a 12% dividend yield on the shares they buy back and instead pay a 4% interest or so on the borrowed funds. Let's do some quick math. Say the company buys back 1000 shares at 1.40. They would save paying $160 in annual dividends and instead pay $56 in annual interest ($1.40 X 1000 = $1,400 4% = $56). Seems like a no brainer to me :)
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