RE:RE:RE:RE:Questionblindpig wrote: I don't understand your logic. If they did this again in 2023 with $100 million at $12.58 and again in 2024 there would only be 9 million share out. Based on $2 per share yearly profit in 2022 on 26 million shares, and assumming stable revenue and margins going forward (a big assumption), profit per share would increase to $5.78. I can't imagine shares still trading at $12.58 or p/e of 2. If they are I will be a big buyer, especially at stabilized profits.
The real question is not this special dividend, but rather can this company actually stabilize and eventually increase revenue and margins. If it can the shares will be worth a lot more than $12.58.
My logic is simple. I had 500 shares. If I kept them I would have received $1,887 for the 150 shares the company is going to take. I want 500 shares. If the price stays the same as it is today I will have to buy back those 150 shares for $1,924. I lose money. Selling all 500 shares at $12.93 yesterday allows me to buy back the 500 shares later, after the company buy back, at any price up to $12.90 and I basically break even but still have 500 shares. If the share price drops to the $12.58 range I profit on buying the shares cheaper. Not a huge gain but I still will have my 500 shares.
I don't disagree with your comments on a future price one or more years down the road. I'm talking about the next month or two.
Cheers.