Post by
MyHoneyPot on Jan 12, 2022 1:06pm
Meaningful Dividends out of Investor Grasp
The company's stated goal is to buy back shares until the float is 600 million, all that means for the shareholders of ARX is as the stock price increases so does the capital requirement to meet their buyback objective. It pushes any kind of meaningful dividend futher into the future.
Today, they would have to spend roughly 1.355 billion to buy back the shares.
Today they want to spend 700 million to build out Attachie.
Today they want to pay off 1 billion in debt.
All that is ahead of the share holders and above any current capex or operational plan that is in place.
So a meaningful dividend, maybe 2-3 years from now, but by then I am sure they will come up with a whole bunch more objectives that require capital that will push shareholders futher down the road.
Too Bad, So Sad.
IMHO
Comment by
Trapped on Jan 12, 2022 1:22pm
I'm up almost $300K on this, which feels pretty meaningful to me. For dividends, I let ENB, TRP, the banks, insurers and telcos do the heavy lifting. ARX is a deep value / recovery play that will reward investors handsomly with rapid share appreciation in the near term.