RE:RE:RE:RBC Capital analyst changeThey've shown since last year that they have more cash reserves than they can spend for growth. Facts are there, tens of millions collecting dust.
They've done a stock buyback before and it helped propel the share price. Are you saying that was a waste? You prefer the share price to languish while the insiders don't even deign to use their own money to buy shares at these dismal prices?
No matter how you slice it, if the company does a stock buyback and get shares at 8 or $9 and it gives the share price a leg up, and 1 good quarter + 1 good guidance later it's at $13, then it was worth it. Over 50% ROI in 6 months, it's far better than collecting dust on the shelf.
As I said, they can spend a small amount of 5 to 8 million dollars to snag some shares at these discount and still have plenty of cash reserves for whatever grandiose acquisition they are gunning for.
It's a good way to hedge your bets. An acquisition is easier said than done and might not happen within a year. You do a share buyback, and you still have money for an acquisition
And if you don't get an acquisition, but a stock buyback with a solid quarter + guidance, it still improves the share price dramatically.
Forget about the VA until at least 2 years elapse. In Spring 2022 the results of the 1st VA study would have been digested.
The 1st VA study that is in progress is VERY small and is only used to confirm what we already know from the 2 studies on Non-Intraveinous ventilation:
-It meaningfully reduces risk of hospitalization and emergency room visit
But after the 1st VA study, which should be just as successful as the 1st two studies (the 2nd study was published in a peer-reviewed journal), the VA will make a second, much bigger study, that it takes time to recruit people, do the 1 year study, and do a follow up period of 6 to 12 months.
So only after all of that will the VA be ready to place a big order with Viemed, and that is over 2 years away. The conference calls keep stressing that the VA thing takes time
And there is also Tropicalsun's excellent point that you can't buy thousands of ventilators quickly in the current supply constrained market, which makes the idea of spending a small part of that money that would remain unused anyway on a share buyback looks even more appealing.