re: a look into the future.....no future (?)
Pedro, you are in some sort of fantasy world on this buyback thing. You obviously do not have the remotest clue on how buybacks come about, but in your defence you are one of almost everyone on this site who don't have a clue on buybacks either. PSA:
1. They do not have the money for a buyback.
2. A buyback is often below NTA of a company. Working out NTA for a coy like PSA is nigh on impossible. Directors would look really stupid if they instituted a buy back and then found the share price lower.
3. Share buybacks are really about 'management of capital' and usually excess capital. PSA does not have any excess capital. PSA has recently bid on several new licences/prospects. How, pray tell, are they to develop those prospects when they spend their available cash (when it builds up) on a buyback?
4. 'Introduce modest gearing' - you have got to be kidding me, and to introduce it for a share buyback - total insanity. Talk about Russian roulette. If a company like PSA cannot pay its way they need to have a long look in the mirror.
Growing companies simply cannot have buybacks. Many people on this site trumpet "waaaa - have a buyback, waaaaa -have a buyback - waaaaaa, waaaa - the sky is falling" as soon as their investments fall below their entry points. In my opinion, these are mostly newbie and unsophisticated investors will little clue as to the running of the markets.
Now what PSA really need to do is to let the cash build up in the company coffers a little and just take the foot off the development pedal a little while this money builds up. When investors see the cash position beginning to rise again, they will feel a little more comfortable. Their position in a flawed US gas market is a good one and is one they should be able to exploit for many years to come.
Sorry, but this has to be said.
PSA Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
