Tidewater Midstream and Infrastructure Ltd T.TWM

Share buy-backs

[goodbuddy]

Share buy-backs are not as good as everyone thinks they are, the reason share buy-backs have to be executed is solely due to poorly use of capital or poor returns on invested capital.  In a nut shell, poor management.

[longrun86]

I think the Teledyne story is a fascinating case and very instructive to the buyback topic. Personally, in situation where the share price is undervalued, I would rather the company buy back the shares than spend the equivalent amount on dividends. I don't need the cash and I prefer to generate capital gains. For long term shareholders, buybacks can be an extremely important source of return

[Tyee1989]

Very true, when a stock is this cheap it is better long term.

[Tyee1989]

What are you talking about? Buy backs are a great return on investment if the share price is worth less than what the company is actually worth.

[Ogopogo26]

3 board seats are private equity guys, they had to approve the elimination of the dividend. Birchhill holds 23%, have a cost base above $1.40, have been holding for years and need to monetize their investment at some point, so they are more than keen to see the share price go up. The share price hasn't gone anywhere in years, despite the dividend. TWM is not a utility, that's the point of

[TVR]

I certainly hope the share buy-back "plan" works to booost the share price which is abysmal.  Personally, I think boosting the dividend by 50% from 4c to 6c would have a much larger impact and the additional cost would only have been $9 million per year and be a small portion of the $40 million plus interest saving TWM will get from receiving the Pipestone sale funds.

[CHECKMATE77]

I don't think people are investing in Twm for income .

[Ogopogo26]

I have said so numerous times, I don't think you fully understand the math of the Pipestone sale. TWM - at some point - will have the interest savings you talk about, plus save $8 million in lease expenses, but they lost $50-60 million in annualized EBITDA, so this deal will at best be marginally accretive to free cash flow.

[TVR]

Combined entity (TWM + Renewables) should be ahead something in  the order of $50 million csh flow on a go-forward basis by end of Q1 assuming the Renewable Diesel start-up goes reasonably smoothly.  RD should replace virtually all the lost cash flow from the Pipestone sale and leave TWM with the $40-50m in interest and lease savings from the sale proceeds (assuming they monetise the ALA

[goodbuddy]

Birchhill will omnly see $1.40 when the HDRD complex is firing on all cylinders, Not sure if this process is an easy nut to crack.

[goodbuddy]

AER's ST13's is indicating some struggling properties.

[goodbuddy]

I applogize about mis-spoken about the buy-backs.. I guess a 11% return for tidewater is a miracle, if a growth company like tidewater is satified with a 11% return, i'm happy for them. "Companies generally don’t like to acknowledge this one, but the reality is that buybacks can make a company’s earnings growth appear better than it actually is. Let’s say that Company X has 10