BBDB859 wrote: Lets. I'm not saying that buying shares for Cancellation is better than paying off LTD. Tell me where you got that?
All I am saying is that it makes sense to use the share buyback program with the compensation process, because they are already paying compensation to the executives. Why not use that compensation money to control some of the SP by using the Market Makers (or who ever they use), to buy the shares in the open market? This process creates demand for the shares. The MM's are experienced people in the market and can help regulate the SP. Or to answer your question,
the MM's buy the shares for compensation in the open market, and at the same time increase the SP for the executives to cash in on the higher SP, when they sell their shares. We and other Investors, can sell for those higher prices too just like the executives.
The players and shorters are on their toes when they play their games because the MM's thwart their Shorting or "naked shorters" get caught having to cover when the buying occurs. This buyback process creates a demand for the SHARES.
This game with manipulators is essential right now, until the Institutions kick in, and we'll have a natural SP balance of the SP. Where the Institutions are buying at lower prices, coupled with our share buyback program, and even Retail.
Letsmakemoredol wrote: BBDB859 wrote: Lets
Naked shorting is the problem, and that's why having a small buyback program keeps the share price up, and scares a few of these players off. The Market Makers are smart, and control the SP if they are active in the Market. Remember that the MM's work at keeping the SP up, so that management can get a higher SP for their compensation when they sell in the open market. Just saying, we all benefit here. It seems that
compensation payout in the form of Buybacks works well. Cheers
Letsmakemoredol wrote: BBDB859 wrote: I beg to differ Lets. I think a small dividend is useless.
I think that Nordico's point, and even mine, on buybacks, which discussion started 2 years ago on this board is a better idea. To do buybacks is also a way to keep some of these shorts honest, and if they can cancel some shares along the way, then that's even a bonus.
Your idea about paying off Long term debt is good. No one here will argue with that. The point here is, that we are too early for a dividend. Just wait for the LTD to get reduced first, then we can implement some form of Dividend. Right now the share buyback program is doing great.The way they've set this compensation up is smart, to influence the SP somewhat with the use of Market Makers.
Letsmakemoredol wrote: Nordico wrote: No point in me debating the reasoning of executive share-based compensation; that's just the standard practice in North America, so doesn't matter whether I support it or not.
I'm saying a company should prioritize defending shareprice when shorts bring a valuation down to unreasonable levels (and may push it further if a company doesn't do buybacks), over spending that specific amount of money on debt, yes. Keep in mind Bomber doesn't need to do one or the other - they can and should do both: spend the bulk of net income on LT debt, while spending around $100M (1/5 of annual profit) on buybacks, which is what they're doing.
Letsmakemoredol wrote: Nordico, why do they need to? Just cut a check to the executives for fair market value and be done with it.
So you are saying buybacks and canceling shares are a bigger issue than paying back the long term debt? With BBD's debt and negative equity?
since it appears that 99% of executives immediately sell their shares, it would make it easier just to give them the cash in lieu, no difference from a tax perspective. I have zero issues with them receiving compensation, either in shares or in cash.
I think every dime, outside of executive compensation should be used to pay back debt or give shareholders a teeny tiny dividend, we deserve some rewards as shareholders too. I'm fine if the stock tanks, its easy money to grab more shares like I did late last week for a quick flip next month or early 2025.
859, my point is there are much bigger priorities than buyback for cancelation. All that money should be going on LTD and I hope you agree. Fine, skip my 2nd idea for a microscopic dividend, let's get rid of the negative equity!
Also if you weren't aware naked shorting is 100% legal in Canada, they don't need shares to short.
859, it doesn't keep the share price up with 99% of the shares given to executives are immediately sold back into the market.
Tell me how buying shares one month and then the next month or so selling them keeps the price up? you are also saying buying shares for cancellation is more important than paying off the LTD?