What price would Paul Sell out for, page-27

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Tarvold

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29/11/20

21:47

Post #: 49223804
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Originally posted by het_tien_roi: ↑

If Zoono MT believe in the company and know that future earnings will grow, buying a 2.2% stake in the business is not a bad idea. 5m/226m. Based on:

- Putting the money in short term deposits provides little to no benefit to company as yield is virtually non existent
- If Zoono is planning on pay a dividend, it will probably be between 2.5 and 3.5% yield based on current share prices, which is a better return than short term money market
- Liquidity is still available to the business if needed
- 5m/$1.39 per share is only 3.6m shares, buy backs generally go for a while (1m to 1 year) and with the average volume between 400k to 600k per day, it wouldn't be long to acquire 3.5m shares (Unlike what you have said)
- If earnings growth is to continue (like we keep hearing) then there 2.2% stake will increase in value and us as share holders will benefit for this increase in valve
- Who really cares what Regals is doing, we are running a business and if people are shorting the SP, then the best option to over come is: increase revenue & profits, make the company worth more. Then shorters will drop off very fast.

Paying out dividends and devaluing the company now is a stupid idea and I am completely against it. (Not suggesting you are saying pay a dividend).

Share buy back would be a much better option IMHO

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Total drivel.
Buying back shares does not increase shareholder value when you are paying a massive premium to the net assets of the company, the opposite in fact.

Buying back shares will have a negligible impact on the long term share price.
The rationale for buying back shares is to increase earnings per share, what's a 2% increase on 10c going to do for anyone?

ZNO Price at posting: $1.39 Sentiment: Buy Disclosure: Held
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