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1,124 Posts.
28
08/02/12
21:13
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Yosemite I appreciate they aren't going to put a buy order in for 50 million shares on March 1st lol.
I watched the buybacks for LNC and AZZ have little effect on the price of both those stocks.
Fundamentally they are a bit different especially with regard to the capital structure.
UML must have the highest cash backing of practically any share on the ASX with 44mm in the bank and 8 mm in bonds and a market cap of 69 mm.
At todays closing price of 13.5 cents it will cost 6.75 mm to buy back 50 million shares.
So the company spends 13% of it's cash surplus to increase the value of shareholdings buy 10%?
I would be interested to see a brokerage initiate coverage on UML and have a real dig at the intrinsic valuation of this company.
Too complicated for mine I just see it as being ridiculously undervalued as do the board.
Could be a volatile couple of months coming up anyway!
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