Premier Health of America Inc V.PHA

Ncib is a good move

[Torontojay]

The company is trading at around book value which will improve its book value per share metrics for every dollar of market value purchased below book value. 

The company is generating significant amount of cash and the Ncib makes the most sense given where prices stand today.

[stockrook86]

My one slight concern for PHA has been the relatively high (compared to market cap) floating rate debt. This relives that completely, signal that cash flow is strong and that there is no issue with covenants or anything close. I'm assuming the lender is even aware of this and on board. great stuff

[Torontojay]

I completely agree. It's a good signal to the market that cash flow is strong and can support debt service payments and share buybacks. 

[colourama]

This is definitely good news, although I guess we should perhaps temper expectations since I've seen companies institute a NCIB and never use it to buy back shares. I am hoping PHA makes good use of theirs!