Post by
Lonegaurdian19 on Jul 01, 2024 3:15am
Unique time to buyback
Normally, I hate buybacks. However at the current time I think one is the ideal use of cash. The basic thesis of investing in this company is that having secured a carry, there are a few catalysts that should, as Gil says become a "company maker". That implies a SP far above $.17 USD. As things sit ECO should have have more cash than overhead and any liabilies by a large multiple. This company has two ways of securing future cash; they either farm down existing assets or issue stock. As we wait for farm-downs yet are awash in cash that is not going to be deployed soon why not buy back stock? Say they buy back $750,000 so 4.4 million shares, the run up of drilling tends to make the SP double. The logic being buy back 4.4 mil for $750k then reissue that at $.34 a share or more. I don't think any of us are holding on to this stock expecting a dividend. To me it seems like the right time given we are cash flush and undervalued given future events.
My 2 cents
Comment by
a2bman on Jul 04, 2024 2:17pm
with the volume on this stock an ncib would take forever to make a dent
Comment by
Lonegaurdian19 on Jul 05, 2024 3:23am
I'd argue given the SP stagnating til an event they could knock out 20,000 blocks at an effective price floor. Honestly even if they filed few would decrease their ask below $.17 a share. Seems like a an easy move to clear out any weak hands