STUDENT TRANSPORTATION INC 5.25 PCT DEBS T.STB.DB.A

Company bought back 30,000 shares yesterday

[roxy14]

eom

[pjn0987654321]

According to canadianinsider.com, it was under a purchase/ownership plan.  That may mean they are now going to be regular buyers.  If so, good. 

[BlueCollar51]

No they didn’t !   “May 27/15 Student Transportation Inc Direct Ownership Buy under company plan Common Shares USD 5.02 29,832 4.4% 708,023”   A couple of years ago they bought some shares on the “public market” under an NCIB but they never cancelled them which I found strange. The usual purpose of an NCIB is to reduce the share count…..   That was one of the reasons I sold my

[pjn0987654321]

Well, they were an "acquisition" under a "purchase"/ownership plan, according to canadianinsider.  Sure sounds like something was bought.  Are you saying these were an equity issue at market price?    And they've taken in money from themselves?  If so, how does that work?  What's the point? 

[BlueCollar51]

I could be wrong but I believe that the “company plan” is a DRIP and the shares are new shares issued from the treasury.   As I said buying shares on the public market under an NCIB and not cancelling them seems to defeat the purpose. There may be a valid reason for Student Transportation to own 708,023 shares of themselves but I have no idea what it would be.   I am no longer a

[pjn0987654321]

"contact Student Transportation’s IR department for an explanation" I did just that.  I don't think it's betraying a confidence to state the answer I got.  It will save them the trouble of answering anyone else who might contact them with the same question.  The answer I got is that the shares are cancelled.

[roxy14]

Confirmed!!!

[BlueCollar51]

If the shares have been cancelled why does todays INK Company Insider report show them as owning 708,023 shares?       Student Transportation Inc Relationship as filed with regulators: 1 Latest filing date: June 2, 2015 Direct Ownership Common Shares 708,023   All the companies that I have looked at that have bought back shares or debentures on an NCIB report the purchase and

[pjn0987654321]

Then they are lying to me or INK has it wrong. 

[BlueCollar51]

I have access to the INK reports through my TD Direct account. I was going to send a copy to your Stockhouse inbox but it doesn’t seem possible to send an attachment. The info in the report doesn’t copy and paste well. As per INK there have been several purchases since Jan 30;   Jan 30/15 Student Transportation Inc Direct Ownership Buyback, redemption, or cancellation Common Shares USD 5.56

[pjn0987654321]

The person I communicated with is the CFO.  I doubt he'd bother lying to me, so the probability is that INK is not reporting it correctly.  Or that's the way INK reports it, and they mean you to interpret it as shares cancelled. 

[BlueCollar51]

This is an example of how INK typically reports an NCIB share buyback;     Jan 31/15 AGF Management Limited Direct Ownership Buyback, redemption, or cancellation Common Shares Class B 7.37 1,520,260 > 100% 1,520,260 Jan 31/15 AGF Management Limited Direct Ownership Buyback, redemption, or cancellation Common Shares Class B 7.37 -1,520,260 -100.0% 0   It would be a good idea for

[pjn0987654321]

"INK to correct their reporting…"  or at least eliminate any potentially ambiguous interpretation when the purchases are done under a plan.  Although I managed to interpret it as involving cancellation, and I imagine most people would.