RE:RE:RE:RE:RE:RE:Buying Back at $19 instead of when shares were $2.55Volkomm wrote: Sure, they weren't going to go bankrupt in 2 weeks. However, a company that is languishing the toilet bowl spinning around with no end in sight isn't a great position to be in.
I got to hand it to them though, their acquisitions were ballsy and was looking rough for a period there but it slingshotted them big time with this turn around.
Addressing the other poster. You cannot cut capex over night. These companies are big bureacratic behemoths and things take time. Almost as bad as the government... but at least they make money. The less you spend now, the more you spend later. The infrastructure needs constant upkeep and capital spend.
Here's an example that might put this into perspective. If you had your hourly wage cut 30% and hours reduced at work, but your mortgage rate was the lowest its been in 10 years, are you going to make extra payments? You have bills to pay, maintenance, planning for the future if it gets worse. You go into survival mode.
A more accurate perspective on your example would be if the Bank all of a sudden offered you to payoff your Mortgage 15 cent on a Dollar. eg.. $2.55 instead of $19. What would you do??? Your hourly wage cut 30% and hours reduced.....you're short on cash... but you have an opportunity to payoff/down your mortgage 15 cents on a dollar...
I tell you what I would be doing.... I would be looking under the mattress and everywhere else for CASH, cutting my outdoor dinning and other expenses..... to take advantage of the opportuninty to paydown(buyback) the mortgage/share 15 cents on a dollar.