RE:Management is complacentMy take is that Melcor runs its operations very well, but is terrible at capital allocation.
Shares are currently trading at 40% of a very solid book value. Making maximum use of the NCIB is a no-brainer ... and yet the company often takes a break for no apparent reason. Shareholders including myself have suggested to management that a SIB (substantial issuer bid) would be an outstanding use of corporate resources, but the company has not seized on this opportunity either.
I don't know who is responsible for this inaction. I suspect those in charge of such matters view buybacks as a sleazy way to 'juice" the stock price, rather than an honourable means of accelerating the growth of intrinsic value per share.
I would be thrilled if the company made a real attemp to buy back 5% or 10% of its shares each year, as long as shares remain below 70% of book value.