Ann: CLINUVEL renews share buy-back program, page-14

This is great news. I feel good about this announcement but management now need to execute the buyback to restore some faith and get investors back on their side - this is their chance to boost sentiment around Clinuvel and get things rolling on shareholder behalf. There are many examples of companies who simply announce share buybacks and then execute them without fuss and this is what Clinuvel need to do. Last years effort with not even $1 Million used in the buyback was simply disgusting. Clinuvel hold over $200 Million in cash, that is shareholder cash sitting idle, there is $10 Million in interest coming from that enormous pile and that $10 Million interest is enough to pay for half of the buyback. The share price is well down on where it was 12 months ago when they first announced the buyback, and Clinuvel is much stronger today, so the share price 'decoupling' from value is now stronger than ever and the reasons for buying shares are more than ever (shorting and manipulation only increased over the last 12 months). Below is what I posted 12 months ago when the buyback was announced, you can see I was more excited then, no one can say the buyback failed it was simply never executed as they announced to the ASX.

"This is really, really excellent news. Management made us wait but doing a buyback while the price is at 5 year lows is exactly when you want to be doing it to get the most shares for the least cost. It will take a few weeks to get up and running but then 12 months of buying shares in this company will make a big difference. 50 million shares on issue is nothing for this type of company and removing 1.5 million of them is going to make a tangible benefit to all remaining holders as there is less shares to spread profits/dividends amongst. EPS is going to be higher forever with those shares removed.

They have done the right thing by keeping it simple with an on-market buyback. Off market would not be so good. Broker selection for who is going to run the program will be very interesting. Shorters have controlled the narrative for a long time here, hopefully over coming months that changes as the buyback gains traction and the good news flow continues. This buyback gives peace of mind that value will finally be extracted for shareholders by this very profitable company."

Today Clinuvel is even more profitable, more cashed up, the blockbuster phase 3 is nearly finished recruiting, paediatrics and market expansion is looking good, the Ozempic potential of a real tanning photocosmetic is coming next year and longer term the mega potential of Stroke is there but the share price is now at 6 year lows. There is no way Clinuvel will ever make a cash printing, profit growing acquisition with a P/E of 14 like they represent today - there is no better investment than buying shares in themselves while protecting, rewarding and redistributing a small amount of capital to shareholders at the same time.

All IMO DYOR