ADF Group Inc T.DRX

NCIB

[lifeisgood1010]

For the few who read my posts on DRX, you know how positive i am in
the prospects of this company for the many years to come.

I like their CFO and also the Paschini (On an humain and operating side)

But if there is one area i don't get it, it's the board decisions.

The board decided to retire 8.5% of the outstanding shares at $17.31
at a cost of $47.9 million

J.F. Boursier told me that even after the buyback, DRX would have as much, if not more cash coming this January.

DRX ended January with $72 million in cash and this past July it was even higher at $76 million.

I have no doubt that they will be sitting on a lot of excesive cash this coming January.

So if the board tought that it was a great idea to buy back shares at $17.31 imagine what a steal
it should be at $9, $10 or even $11

If they were SHARP, they would have already filled a NCIB intention.

Using a SIB instead of an CIB with the same $47.9 million with a range of $9.00 to $11 would probably be filled only at the $11 mark.

Do the math:

At $9 they would retire 5,320,491 shares or 92.35% more with the same $47.9 million

At $10 they would retire 4,788,442 shares or 73,1% more with the same $47.9 million

At $11 they would retire 4,343,130 shares or 57,36% more with the same $47.9 million

Imagine retiring another 4.3 million shares instead of the previous 2,766,287 shares

The total share count would be going down a whopping 22% in one year.
Going from 32,640,206 to 25,530,789

I am leaving in early Dec. for a month vacation so i will not be there for the next results.

But when i come back in January, if nothing as been done on that front, i will email
the company 

I can appreciate that they are prudent and conservative but i my mind it does not make any sense.

Again, if you were willing to buy at $17.31 you should be tripping yourself to buy at these levels.

At minimum, you should prepare yourself by initiating a NCIB with the TSX

[ykzsh8]

Yeah that's what's confusing. Besides NCIB, it's interesting to not see some insider buying at these levels, but on the other hand their positions are already pretty full. Adding a handful of shares won't change their individual financial situation much, but it will send bullish signals to investors, even if it's scooping up a small amount like 1k shares. A wait and see

[Daudau11]

I totally support the company buying back shares at these prices either via NCIB or SIB cause it just make sense since they bought at much higher prices if they believe they have excess cash and no other expansion plans. Insiders might not be able to buy cause they have material info. regarding current quarter #s that haven't been released yet or just any other material info. they might have

[microcaphobby]

I am not sure reducing the float  by buying back sahres is the best decison. A substanitla increase in the dividend orone  time special dividend is more attractive.  There seems to be a floor at $9.10 or so. I tihnk we will get a nice surprise whne the 3rd q numbers are released..