Question for shareholders and I am not in any way forcing an agenda here contrary to common belief.
This move my management does seem smart. Buy shares at $3.50, and then sell them at $3.80. Credit to them for doing this.
But cash is king. The past five years has shown that an exploration company needs as much cash locked in as possible to make it in the big time.
CDU's bank balance last week was around $121M with no debt. Pretty impressive. With this move, they are effectively cutting their cash balance by one third. Why? Just to put a floor under the share price? Surely Wayne is confident enough in his project to support the share price in it's own right?
Where is the fundamental benefit here. The EV of the company stays the same. There's just less shares out there now, but also less cash in hand.
Only need to look at CFE to see that share buy backs are never as good in the medium term as they look on paper.
CDU Price at posting:
$3.58 Sentiment: None Disclosure: Not Held
