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clock Created with Sketch. 23/05/25
13:03
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Originally posted by Silverchair:
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A class action would be an interesting one, someone with legal experience in this area please leave some opinions on this matter. The first thing I view is that nearly all companies that announce share buybacks just simply go out and carry them out as they said (If the company has a P/E 100, or 200+ they don't really have to IMO). The CUV P/E is about 12 and it is hard to come to the view that shareholder interests are being protected at these multi year lows by not doing the buyback. Clinuvel's very strong words that they would not only use a buyback of 1.5 Million CUV shares to redistribute a small amount of capital and consolidate the register, but also to strike on shareholder behalf against those who gamble against the company, gave extreme strength to their statements. I don't think anyone could imagine that more than 12 months later they have practically not touched the buyback, but they have actually issued about the same amount of shares internally in a nice slap in the face to shareholders not to mention some nice cash splashes in the past on events of questionable value. Someone posted on here PW told German investors at a meeting last year that the BB was just meant to stabilise the SP around $15 (please correct me if i'm wrong on this or post evidence of this) and I queried this at the time because if true that meant information was provided that not all market participants received so that is something I would like answered? Either way the price is about 30% below $15 right now. No one can say the share buyback has failed, it is the complete lack of execution that has failed. Buying back 1.5 Million shares on market will make a real difference for shareholders and it will only use less than 10% of shareholder cash reserves which will probably be around a massive $210 Million in just a few weeks time when they close the books on another extremely profitable year giving them a massive buffer. Which brings back the original point raised on litigation, it would be interesting to see if they would spend millions fighting a class action for example when the bloody buyback would cost less than $20 Million (below their own budget) to complete at these levels and would provide everlasting financial benefits to already excellent Clinuvel financials and boost shareholder sentiment as it did when the buyback was first announced? Very weird.
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Yes... Let's sue them all for not doing what you want them to.
(20min delay)