Yellow Pages Ltd T.Y

Q3 FCF

[HermannHaller]

Well Q3 was a little below my expections, I must admit. But the company is still generating big free cash flow, over $17 million in the quarter.

They currently are sitting on $76 million in cash. They will spend $50 million on the buyback, and $12 million for the pension, that will leave $14 million. But generating $17 million a quarter in free cash flow, that cash balance will grow to $82 million by the next year. Even with some deterioration, they should be able to buy back another $50 million plus next year. And after this buyback, the market cap is only $160 million. They'll buyback every last share in just over 3 years, haha. I guess I'll just keep collecting my dividend until the company has bought all my shares!

[vr6loco]

It was below my expectations also. Moving forward, those numbers will improve.  As for buybacks, I think the company is rushing to get it done by years end because of new taxes coming into play next year.  Perhaps they may increase the dividend substantially next year instead of more buybacks.  https://www.cbc.ca/news/business/ottawa-stock-buyback-tax-1.6639713

[HermannHaller]

That's an interesting point about the new tax. Thx for the link.

[whodathunkit]

There's actually no reason to be buying back shares in the first place.  NCIB's are good for situations where there are hundreds of millions of shares outstanding.  By reducing the float, in theory to improve the earnings per share remaining and assuming a same multiple the remaining share prices will go up.  An easy way for management to say look at us, our earnings per

[stockstarker]

I agree that the only reason they are doing this buy back is to  benefit the major shareholders and take advantage of the minority shareholders. The take out price was based on a number they came up after doing the average price over a five day period is absolutely BS. This stock trades so few shares in a day it has absolutely no relationship to what the share price should be. The part I

[vr6loco]

I'm sorry, you're going to have to understand that all share holders are treated EQUALLY. Weather you own 1000 or 10 000 shares, if the buybacks were at $10.00 or $20.00, it doesn't matter. Everyone gives up 25% of their shares, in the end you still own the same proportion of the company. The lower price gives the company the advantage of buying more shares at the lower price. Looking

[whodathunkit]

I'm not arguing that all shareholders are not being treated equal.  What I'm saying is what they are doing is ultimately leading to a privatization.  The 3 largest shareholders don't trade their shares on the open market.  The NCIB portion of the buy backs are on the open market which means they are reducing the number of minority shares outstanding (thereby increasing

[Richeer]

I agree. We should vote "NO", and take them to the court.