BHNth. The directors do not actually understand what a voluntary share buyback is. And very few of the posters here understand this rarely used capital mgmt technique either.
It is NOT an onmarket buyback. Each shareholder gets to voluntarily participate in a voluntary buyback and those who need to exit take their money and go and those who want to stay as shareholders, well they stay. It is NOT a return of capital.
The point most people seem to miss is that if the company's NTA is 45 cents and a bunch of people get off at 25 cents, then the NTA for those who remain goes up.
They have a wad of $150M and it looks like it is growing by about $5M a month. They need only spend $20-25M on a decent voluntary share buyback and still have $130-140M to find this so called killer deal they are looking for.
A voluntary buyback is NOT about supporting the market price for the shares (although indirectly it may have this effect). It is about CREATING SHAREHOLDER WEALTH for the remaining shareholders.
Sorry to have to SHOUT. Although you understand, it is clear most do not. I try my best to explain it to people, but 25 is still bigger than 45 for most posters. All seems to be a bit too hard for a lot of posters. Nobody seems to be that interested in strategies that create shareholder wealth. Totally bizarre.
PPP Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
