Post by
hawkowl1 on May 07, 2021 3:37pm
Who benefits in share buybacks?
Jerry Zucker Fund benefits if they intend on taking SXP private.
The best use of excess funds would be to pay a dividend.
Most investors can figure out SXP will have a good 1st quarter and yet stock is falling with results to be released in less than a week.
Most securities can be manipulated . In low liquidity ,tight float situations like Supremex it does not take much to suppress share price.
Anyhow when I see Jerry Zucker fund with all that money tied up and stagnant stock I must wonder what are they thinking. If they intend on making a move what are they waiting for.
I would much prefer a very generous dividend rather than growing company and share buybacks.
Comment by
hawkowl1 on May 07, 2021 3:55pm
Futhermore....SXP buysback shares then issues cheap options to management and staff.
Comment by
2young2invest on May 07, 2021 4:50pm
Results might be mixed because of higher pulp prices. Their NCIB will end in August, if they decide to restart divs, it will be in Q2. So far their buybacks are almost like a clock, 11600 shares/day. If Jerry Zucker decide to take private for $4+/share, I will vote yes.
Comment by
hawkowl1 on May 07, 2021 5:00pm
I would gladly except $4 and Its worth every penny to purchaser. They would get their money back in 4 years max. Good point on pulp prices but every company has raised prices on all products .SXP can do the same.The envelope or package is cheapest part of whatever is being shipped. More and more people are ordering on line. Its a permanent trend.