RE:RE:RE:83,600 Shares CancelledBarstoolSage wrote: Seems to me there is another side to this NCIB and that is market support
This is a thinly traded stock, so that if shares are issued for sale, rather than wait to see how motivated the seller is by underbidding with a wide buy\ask....GH simply sops them up if the company deems it a buy"
Nice side effect,
Sage - Buffett would tell us that the lower the share price, the better the deal.
You are right, some passive NCIB buying could support low-volume selling activity.
The rules for NCIB daily buys state that a company cannot bid more than the current market bid. In other words, they can't conduct any buying that pushes up the share price.
So the way to look at daily buys is that if GH gets a fill, it means that likely overall market conditions were neutral to weak. On those days, individual shareholders more often toss their shares out the window. I noted increased selling as the Wildfires hit hard and then a few days provincial pre-election.
NCIB @ $8 is great
NCIB @ $9 is fine
NCIB @ $10 say when
But if we were talking support, we can't overlook Laurentian Bank's daily buying. It's that house doing the weeding. That's not their goal, but their buying is why we are still in the $9's.
Funny thing about 'Forgotten' value stocks. People don't pay attention to them until some material news is released. By that time, the stock will "Gap-up" at the market open.
In this case, say a year from now they raised the dividend; we'd probably see the price move from $10 to $11.50 without any volume. Say the stock closed at $10 Friday, they announce a dividend hike at market close Friday, then at the market open on sleepy Monday morning the stock magically shoots $11.50.
Just throwing round numbers out there as rough example.
Don't hold me to it a year from now if the stock is $12.
