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Bullboard - Stock Discussion Forum Amerigo Resources Ltd T.ARG

Alternate Symbol(s):  ARREF

Amerigo Resources Ltd. is a Canada-based copper producer. The Company owns a 100% interest in Minera Valle Central S.A. (MVC), a producer of copper concentrates. MVC, located in Chile, has a long-term contract with the El Teniente Division (DET) of Corporacion Nacional del Cobre de Chile (Codelco) to process fresh and historic tailings from El Teniente. The Company operates in one segment, the... see more

TSX:ARG - Post Discussion

Amerigo Resources Ltd > you buy back shares first. Then dividend yeilds skyrocket
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Post by drunk@noon on May 22, 2024 7:53am

you buy back shares first. Then dividend yeilds skyrocket

when they are issued on a lower share count. i.e you buy back 1/3 of your shares and a 10% dividend turns into a 15% dividend. Buy back is a no brainer vs special dividend it you understand basic math.
Comment by Thestockguy on May 22, 2024 8:39am
The problem with ARG is that they generate cash precisely when their stock is at its highest.  As a result, they buy back at the peak valuations and do not repurchase shares at the trough.  Unfortunately, no recent repurchases near the 52 week low.   Ideally repurchases take advantage of mispriced valuations to the downside.  
Comment by goldens on May 22, 2024 8:56am
Little bit of an insult thrown. lol. I understand basic math but just going off what they said in their reports. I think if copper holds we will see both share buy backs and a special dividend. I don't really like a special dividend either because it attracts short term buyers whereas a share buyback increases the yield and rewards those that have been holding. I would also love it if they ...more  
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