Paul a share buy back the way BJ is presenting it , IMO will be negative to the share price.
Because if you look at valuing the company based on EV. (MC + debt)
When they borrow the money to do the by back it increases debt which decreases MC (share price). So they do a by back to get the MC (share price) back to square one. But they have increased the risk profile and weakened the balance sheet with the increased debt and interest payments. So why.would you do it.
Ann: Working Capital Increased as Plant Upgrade nears Completion, page-43
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