Nuttal leaves NVA in the dust....So Eric who has been a supporter of NVA for quiet some time, on Friday he relabels the company as a gas stock and informs us he has unloaded a good chunk of his position.
Well it just goes to show the strength of his conviction that company's should buyback all their shares because he wants to be the last shareholder, owning the stock with 25 years of reserves in the ground. ( Its a Lie )
Share buybacks don't work that way, and really why squander all you capital and buy back you shares at the top of the cycle when your dripping with cash, so that you can Ensure that Eric, who has an expert trading department can be rewarded with a smooth departure.
In my opinion these share buybacks are utter stupidity, and distract from a company pursuing their primary business finding and producing oil and gas reserves, and every share buyback is a loss of future opportunity.
Well good riddens to Nuttal, he is leaving the party to early and NVA will be producing their best historical results in the next quarter, and its only upward and onward from there.
Look back at TOU last year their shares traded at $84 dollars this year they have been as low as $53 dollars, a 31 dollar difference from the peak price. Share buybacks are a good formula for capital evaporation, with nothing to show for it but a bunch of depreciated shares. At least the shareholders collected a healthy dividend and did not line the pocket of the likes of Eric Nuttal.
Buyback should be opportunistic and associated with a irrational market event, like a selloff because of Fed rates or Canada getting kick out of Nato for it recognition of SS soliders.
NVA has been trading sideways and it think Nuttal is the reason, I hope he is gone and it is onward and upward from here.
IMHO