ADF Group Inc T.DRX

I am not impressed with management with how they handled the

[WizardFuture]

I am not impressed with management with how they handled the buyback. 

They thought it was a good thing to buy shares in the 17s.

And now, with plenty of cash, they decide to buy 0 share at $10.43.

If it was a good thing to buy at $17+ 4 months ago, they should immediately buy now.

I have a lot of shares and my average price is ridiculous, so I'm not selling, but I have not been impressed by management with how they handle the buyback.

[lifeisgood1010]

To buy back shares, a NCIB would have to be put in place witch DRX does not have. IMO, they should put one and quickly, why don't they do so is a conundrum to me and i  agree with you Wizard, if the board thought that it was appropriate to buy at $17.31 Imagine at $10.43.Especially that DRX is and will continue to have excess cash on the balance sheet. The Stock will be going sideway

[Possibleidiot01]

ADF has always been an orphan stock ; it lacks what some people call sponsorship. Lack of sponsorship has lead to where we are now. 'Sponsors, for instance, invest in private companies, create demand for publicly traded securities, underwrite mutual fund shares for public offerings, issue exchange-traded funds (ETFs), or offer platforms for benefits, and so on." Basically when the

[RyanLn]

I think the fairest approach would have been a mix of an NCIB, and a repurchase of some of their shares. The appearance here is they cashed themselves out at the top when they knew there was softness ahead solely for their own benefit. They didn't need advisors to tell them that this wouldn't be well received. Appearances are sometimes just appearances, but we won't likely know for

[Hich1205]

Confidence in the majority shareholders that happens to be the executives is gone. even if the company will do better, it will take some serious actions and a lot of time to earn shareholders trust and attract institutional investors. Nobody can trust this family after the hold-up they did taking a large part of the cash for themself in a time when business is slowing and not sharing any of the

[RyanLn]

All they really need to do to get some of that good will back is to execute. Had new orders for the quarter not been negative, and they had announced significant new contracts rather than just issue a vague puff piece PR about 55 million in contracts over an ill defined time frame we would be having a different conversation. The problem is not just the self serving share buyback. It's the

[Daudau11]

RyanLn, I totally agree with you.  The buyback wasn't handle well but its all the events that followed I believe that really made the stock suffer even more. I hope management has learned something and they won't do this kind of buyback in the future.  I mean they are still have largest shareholder so they lost the most from the recent selloff.  Granted they did cash out

[Hich1205]

For the record they're still holding 40 % but that's 80%++ of the voting rights due to multiple votes shares.  I am very confident that the business will grow again, but my issue is that I don't see how minority holders can benefit from it. The family controls the Board and I don't think they will allow for an increase of dividends or even a special dividend. The EPS is

[ItsDolph]

 I think there is potential for a dividend increase or NCIB next year once they accumulate a decent excess amount of cash, as at the end of the day management still owns 40% of the shares, and they will be incentivized to take actions to increase the share price. I doubt they are going to do another share repruchase as they've seen how the market reacted (sell another 5% of their holdings

[Daudau11]

This is exactly my line of thought as well.  I actually believe management will either increase dividend, pay a special dividend or do a normal NCIB next year once they have a clear picture of their business going forward after election.