RE:RE:RE:Q2 CC snapshotMrMugsy wrote: gudisgood wrote:
Good summary - thanks Mugsy!
Any thoughts on zero buybacks in July and August (so far)?
The market seemed to like Q2... nobody knows how these will work out, but there's a fair chance we'll have some disappointment in Q3 or Q4 due to reasons you mentioned: mainly the Gileard portfolio and Exelon channel sales. Or perhaps not! Who knows. :)
On the other hand, we get to take over Exelon marketing, we have growing products, we have our salesforce out there, Akynzeo bringing in some money...
Also good to note that since they're terminating the Gilead deal, it probably added very little to the bottom line? So even though revenue takes a hit, profits will likely not.
Samira stayed on the Paladin question for a while (could have only said that they're always opportunistic). They're definitely paying attention to how that unfolds. It was interesting to hear that they prioritize Mexico and Canada when looking at deals (which are "suboptimal" right now).
Thoughts ...
Buybacks will happen in a certain range and that range might get adjusted based on perceived value. There could be a period where less attention is paid to buybacks and more on other opportunities.
The average purchase price for all the NCIBs combined is $6.08 a share. As of this moment, we’re in the green for the buybacks, haha. Let’s hope the recent trend continues… but if not, Goodman & Samira will be opportunistic. :)
Yes, I believe the stopping of buybacks has to do with (potentially) multiple factors:
1) the price has gone up – not by a lot, but enough to make a difference,
2) using up a large portion of the remaining cash balance could leave us in a position where we’re unable to take an advantage of other (potential) opportunities at favorable terms,
3) they may have other uses for the money in the horizon right now.
With that said, they
did launch a new NCIB, so they’re certainly willing to buy shares back… however, the return has to be more attractive than what’s currently offered by the market, it seems.