RE:RE:Excess Free Cash FlowBackinblack1000 wrote: So no full disclosure at all on your end, and i am a shareholder at this end.
Posted at 1 with 100 reads already. So what happens when I ask:
You are saying spend $700 million plus 50 million shares to generate free cashflow at 50-60, so that you can generate free cashflow to buy back 5% of the shares.
So does somebody have their head up their butt, being a dog, or licking themselves?...I am thinking that investors are no longer saying start another NCIB buyback after issuing 50 million new shares....they are saying increase shareprice buy addressing the dividend...MORE PORRIDGE...imo...and ease off on the management bonuses....
Free cashflow is not free cashflow if you are just going to spend it on shares, that you just finished issuing new shares.....Sounds like a dog chasing it's tail...I may have to consider where I put my next investment dollars.......imo...compete for the next investment dollar...
Long time shareholder and another body on the pile of the Saxberg carnage on the way down. Been adding to the pile as we come through this recovery recently.
Nowhere am I saying they should buyback their stock. I'm using the reference to show how absurdly undervalued this stock is. $600 million of FCF (their number, not mine) implies an almost 25% FCF yield to equity on a $2.5 B market cap, which we are pre-Shell deal dilution.
And FCF is FCF, even if it goes back into shares. If it's undervalued, it's a prudent use of capital. It's obvious that Shell wanted some shares as part of the deal to be able to monetize some upside. Other investors don't feel the same way about CPG shares and, in my opinion, those shareholders are welcome to disappear.
GLA.