I hope Neuren’s board re-evaluates the benefit this share buy back (sbb) has had and surprises the market by implementing another at $100M
The current sbb will remove over 3% of the shares on issue and done that at more than a 50% discount to what the analysts indicates is the current risk adjusted valuation. Neuren highlighted the analysts valuation at the recent agm, so it should have some relevance.
This alone is valuable however the impact goes further than that as the majority of the $50m spent has seen a subsequent rise in the shorts that, depending on future shareprice, will probably require more than $50M to be spent to reverse.
So in effect $50m (plus what was already shorted prior to the sbb, maybe $60m) still needs to be bought back the only difference is the timing and price is controlled buy the shorters and not the company now.
Keep the pressure on I say.
NEU Price at posting:
$13.71 Sentiment: Buy Disclosure: Held
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