RE:Help me understand buybacks
CJInvestor wrote: Aren't buybacks supposed to reduce volatility in a stock? Ath is down more than most of its peers in the last couple of months yet had an agresssive buyback program in place and almost no debt. If shareholders are not seeing any benefit of this program aren't dividends better and more tangible for return to us? What do others think of this strategy and why things are going so wrong for Ath of late?
Just my opinion BUT . . .
ALL of ATH's buyback efforts to date have been (largely hidden because they have been) directed towards buying and cancelling the shares created through the warrants attached to the refinancing deal in 2021. They are only 3-4 months away from getting the last of those shares bought and cancelled. Those warrants were an ugly ugly part of the refinancing deal but it kept them alive to fight another day.
Once the warrants are all dealt with, the outstanding share count will (visibly) start dropping so there will be fewer and fewer shares available for the traders/shorters to do their thing. Yes, it's frustrating to watch some days but staying disciplined with the buybacks will eventually have a strong effect on share price. Dividends may be an option down the road but I believe getting the share count down will see ATH much stronger structurally and will lead to a much stronger share price.
Having zero debt and a lower share count will not be denied forever !
glta
go ATH go