Biosyent Inc BIOYF

Stock buyback should be end IMMEDIATELY, increase dividend!!

[FormerHedgie]

I orginally wrote this in response to someone saying Rene has been a super leader but it really needs to be posted seperately as a discussion on the NCIB merits (which are extremely questionable).

I am not sure what your measure of "superb leader"ship is but here are the stock returns from morning star,

5 Year Stock Return 1.1% (Index 9.77%)
10 Year stock return 5.5% (Index 7.63%)

Or are you in it for the 2.12% dividend?

As for critical mass, I am not sure what you are talking about.  If you were able to see the composition of the "Pharmaceutical Sales" which is strategically grouped together so you can see how minisucle contribution all the other combined products have relative to Feramax which I am sure is still well over 90% of revenue.

Like you have I am a long-term shareholder but lets be real, Rene and his team have failed to deliver long-term shareholder appreciation (as illustrated above).

I seriously challenge their share buy back program as well.  While I was on the institutional sell-side, one of the biggest complaints about biosyent from potential institutional shareholders was the lack of free float and overall liquidity.  The money on buy backs should be immediately terminiated and that money used for the buyback should be distributed as dividends. 

According to the year end press release, they purchased 400k shares.  If we assume an average price of $8/share that is $3.2M that could have been distributed to shareholder.  That would have almost doubled the dividend rate.  If we apply the 2.12% dividend yield valuation that $3.2M, if paid as a dividend, would have translated more than doubled the share price.

The only person that the share buyback helps is Rene.  My long help suspicion is that after years of buying back the free float Rene's percentage ownership of the company continues to grow.  At some point, I suspect management may take the company private.  

A share buyback for this stock makes NO sense.

IF YOU LIKE THESE POSTS, please like it.  Thanks

[Possibleidiot01]

What needs to be questioned here is the lack of turnover in the stock; removing tradable stock from the market  via a NCIB shrinks the supply which makes it harder to buy a position. There's a chance a dividend might actually increase demand for shares which should cause the price to rise.