RE:RE:RE:RE:This is just the beginningThat is another good point. Everytime the price of oil rises so will CJ's share price.
There is a good chance that shares in CJ will not be this cheap again this year (or after).
Just as an example CJ paid $1.79 million in interest on last years debt.
If they bought back 4 million shares (roughly the price of paying the debt on the credit facility), they would save $2.88 million in dividends per year.
Now interest rates have gone up but that figure was also calculated on triple the debt that they had.
Will their interest be reduced by triple? Probably not with higher rates but lets say its halved.
$1.79 / 2 = $ 895,000 savings in interest or $2.88 million savings in dividends?
Let us also not forget that a 2% share buyback tax awaits CJ in 2024.
Now I am just spit balling numbers around and truth be told I like low debt (zero maybe).
But CJ has a very real opportunity here to leverage their debt into substantial savngs and lets face it they will probably do both of these things moving forward it is just a matter of which they should do first.
Luckily they have sharp pencils doing their financing and my bs naplin math won't matter.
I am looking forward to CJ 's share price going over $10 this year regardless of what they do first.
GLTA