Corus Entertainment Inc T.CJR.B

Share buyback

[wizthewiz]

Any insights into how CJR's share buyback program causes the SP to decrease by ~25%? I certainly was not looking for a stellar SP upside move, but to at least remain flat....

[crocks31]

yes considering that the expectations is for significasnt improvement in results later in the year and the depressed share price i would expect the aggressive share repurchases to take place now.  500,000 shares a month is only 6 million shares; what about the other 4 million? I would like to be seeing 100,000 shares a day not 25,000...

[YassineNoBS]

If the company buys aggressively at the front end it would empty its bullet chamber earlier than expected thus letting the short sellers drag the price more aggressively at the back end when their chamber is empty. It is better for Corus to be strategic and optimize the order sizing to minimize the average purchase price. Not an exact science since you can't fully predict how far the other

[YassineNoBS]

Short selling is distorting the view you would get from looking at the fundamentals. Normally the math says that assets-liabilities = equity but the stock price was worth more when the company had 2.6 billion dollars in liabilities back in 2016 than now with only 1.2 billion in liabilities. In other words the price is dropping as the company is paying down its debt. Same logic with share buybacks.

[Puma1back]

i don't know how you would expect it to be flat in April when communications & tech were the worst performers - both down strong double digits. dont disagree that it is not fun to have broken new lows, but in the overwhelming negative sentiment that took hold that last bit of the month it seemed like the technicals wanted to create a new low. I thought they were going to push it below

[Puma1back]

So they bought back 500k plus shares - well the market shorted almost a million shares last month so the net effect on liquidity is zero. buybacks seem to be loved by analysts etc, but i have always thought of them as a real waste of $. 

[Hillsville]

Buybacks make sense since it'll save on dividend in the long run. If they buy back 50% of shares over a 10 yr period , no. Of shares would reduce by 50% and dividend payment would be reduced by same. L meanwhile the firm would save approx 5% of dividend obligation each year on the cancelled shares of purchase at current market price.  If the firm decides to increase payout ratio to

[ATM_EngTech]

I agree with @YassineNoBS this stock has been heavily short traded for years. For the trailing last year the bi-weekly median percentage is 18.353%. @Puma1back The real short traded numbers last month, from IIROC reports, shorts traded and covered in April was 7,095,849 on total trade vol of 37,896,866 with a ending short open balance of 3,655,903. Also institutional long holdings are way down

[Puma1back]

I know the closing short was 3.6 million but you have to remember that much of the increase in April was offsetting the large reduction in shorts that happened as always before the March ex- dividend date. We will see if the latest Federal budget has closed that quarterly market play.   for some perspective though, the short position is a paltry 1.80% - pretty small when you compare it to

[YassineNoBS]

Remember that seasoned short sellers almost never short directly the stock, they buy put options to short and call options to cover. The short interest numbers that everyone focuses on  reflect those of novice short sellers who see the trend and want to ride the momentum which is just the tip of the iceberg. Derivatives are the real game behind the scenes (options, futures, and contracts for

[mnztr]

It it true that stock that are for sale ie have a limit order cannot be borrowed for shorting? I just put a limit order of 5.98 on my shares open until june.

[YassineNoBS]

If your shares are held in a margin account your broker can lend me to short sellers and collect interest on them without giving you a dime. by having them transferred to cash account and explicitly asking your broker not to lend them for shorting you decrease the risk but brokers are known for not following the rules because they know what they have in their inventory and they are not good at

[mnztr]

what about registered accouts can they borrow from there?

[YassineNoBS]

In theory short selling is only available in margin accounts. The simple answer is then no since the tax regulation does not allow it. With that said very few people (mostly beginners) short stocks by borrwing the shares from the broker. Most of the short selling is done through put options. Short sellers buy lots of put options and then proceed to hammer the stock  down as a cost of doing

[YassineNoBS]

Just to clarify my answer to your question. If you have placed a limit order for $5.98 the short sellers will not be able to get you out of your position at less than $5.98. Your shares could be available for shorthing though betting that at some point you might get fatigued and sell at a loss. The whole premise of short sellers is that at one point enough people will capitulate and start getting