GREY:VITFF - Post by User
Comment by
HoneyBadger77on Apr 04, 2024 11:08am
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Post# 35970407
RE:RE:RE:Market cap normalization
RE:RE:RE:Market cap normalizationThe only circumstance that I would support share buybacks would be if it was needed to grab / block the shares the shorters might need to cover a short position and put the shorters on alert that they can no longer control the share price.
Other than that, what good would it do to buy back a mere 3 or 4 million shares on a 66.5 million shares float? That 3 to 4 million shares would cost $24 to $32 million at today's price (CAD dollars albeit but still) and help the day traders book some pennies in profit. I keep saying these day traders need to quit counting pennies when there's dollars to be made.
I'll be a lot happier to see $32 million less debt on the books. Every US dollar of debt they pay down is really worth about $130 CAD plus the interest savings that they no longer have to pay in future. That $1.30 to $1.40 CAD (Us dollars converted to CAD dollars + interest saved) from gold sale dollars would make a noticable difference to cashflow and imrproving the bottom line if used to pay salaries, buy fuel, etc (which is paid in CAD dollars).
Ask people that paid off their home mortgage years ago if they now think that was a good move and how's their cash flow now This isn't exactly rocket science here. When you have as much debt as VG has you pay down the debt first PERIOD and when the rainy days come (and they always do) you sit at your couch with a hot cup of coffee gazing out the window at the mountain views and say to yourself 'I wonder what the poor people are doing'? Smart companies use debt for leverage when taking on debt has tax advantages and is easily manageable; VG is not in that camp just yet....someday perhaps just not yet.
HB77