RE:RE:RE:RE:RE:RE:RE:Buyback and Rogers silence Illustrative example using rounded figures:
Starting Portfolio value $ 30M, shares o/s 100M NAV/sh .30 SP .10
NAV/sh = .30 ($30M/100M)
Portfolio increases in value by $ 10M to $ 40M (33% increase not outrageous given current Cannabis market increases and a few liquidity event hits stateside or otherwise)
Liquidate $ 10M of the portfolio (ie convert to cash).
Buy-back $ 10M worth of shares at average market price of $0.15 (10 to 20 cents)
Shares redeemed = 67M ($10M/.15)
Remaining Portfolio value $ 30M ($ 40M-$ 10M in redemptions)
remaining shares $ 33M (100M - 67M )
Final NAV/sh
$ 30M/ 33M = $0.91 !!
You can argue the assumptions (which I agree are extreme), but the gameplan is straightforward. The more you buy-back the greater the discount, the greater the liquidation value/share. Of course where this breaks down is if the redeemed shares are simply replaced with new low cost options. It's a great gig, that rewards non-promotion, and takes advantage of extreme undervaluation by the market.