Low share price policy... For a long time now, we have been witnessing the maintenance of the policy of low share prices by Apha. Why? In my opinion, the main reasons are the following:
- It is much easier to control a company when shares are undervalued. Any risk of hostile takeover is not an issue here - it could be quickly neutralised with “a little help from a friend”, by quick rise in share price as space for it does exist.
- It is much easier to borrow with undervalued shares.
- It is much easier to repay debts when shares are undervalued.
- It is easier to establish a solid partnership with undervalued shares although this, for various reasons, has never been on the table for this management.
In plain language, the lack of a large partner and subsequent constant funding pressure is at the heart of Apha undervalued share price exercise and the disproportionately low value of the company. Unfortunately, in my opinion, Apha under this leadership certainly does not want any partnership, so until that eventually happens, we will continue to enjoy further creative ways to keep the stock price low by our precious CEO and his team...