RE:Some comments on comparisons- Any other ideas for fair priceI was a bit annoyed Ho Scott answered the idea of share buybacks.
If you look at it simply, investing in IBI by buying and canceling shares means you’re getting $0.33 of EBItda per $1 you invest. (That’s an EBITdA margin of 33%, really). This is with little risk because the company is performing consistently..,,,the shares are at a deep discount (as Oakboy posted, any way you cut it).
So, if you’re “reinvesting” in technology-based acquisitions, you better be getting in excess of 33% EBItda margins of that new business, because there is a risk that you might not as well. Higher risk, so their should be a higher reward.
if they bought just 10k shares a day over 200 trading days @$5 share, that’s $10M they could invest in themselves, spur some activity into the stock and maybe kill off the BS small game electronic trading that’s at least partially contibutkngntk keeling IBG shares range-bound.
IBG is unbuyable right now because their worth $10-15/share just to be valued like their peers. No board can get away with offering a 100 to 200% premium in this space. So, here they are.
If I were them I’d just announce the buyback; there is no onus to follow through like there is with a Dividend. And when you’re this undervalued....man, do something.
I’m afraid they’ll try to go private for $6 a share....or some lowball figure like that. With the partnership owning 35%, they need to make an offer that’ll just get a few more votes to get the deal through. Start at $6 and move up a $1 or $2 until you steal the shares from just a few of the longs. If I’m the partners, that’s what I’d do. If capital markets aren’t efficient and valuing you properly, you ditch them.
Anyways....Outside do the oil and gas space, which is controlled by a few valves ins saudi (ie. high risk, see tomorrow), you just don’t see valuations like this.
I mean $32M in cashflow just last quarter? Are you kidding me? It doesn’t matter what metric you use....