Generally a buyback is used when the company cannot invest its money in a higher return than by buying the shares - if the shares are anticipated to return , say 10% pa, and the company cannot find assets that would yield a higher return that this, than they use the case to buyback shares. It could be seen as a weak signal in the company and low and behold the share price has been drifting since the announcement of a buyback.
I appreciate that other factors are at play that are causing the share price to drift downward though given what's transpired i dont think the buyback will support the share price.
As for the NTA - cash is all well and good until the company starts burning the cash each quarter.
I have watched MCR for many years and management has delivered though obviously jumping from a small producer (perhaps mid ? ) to a serious large player has challenged them somewhat.
Looking to buy in on further weakness - ideally when panic selling comes in.
MCR Price at posting:
65.5¢ Sentiment: None Disclosure: Not Held
