large on market buyback

Hi Moly and holders,

I have to disagree with you Moly.

Every share that gets bought back under 11 cents IMPROVES THE CASH PER SHARE held by remaining shareholders. This is because BTV is trading well under its cash backing.

And every share bought back under 20 cents IMPROVES THE NTA PER SHARE. BTV is trading at less than 50% of its NTA.

Admittedly, share buy backs do not increase the entire worth of the company, so I agree with you in that respect.

But I don't own the whole company - I just own my 'share'. And anything that increases the value of my bit is something I am interested in.

The effect of share buybacks on PRICE are temporary. Agreed. But when shares are bought back at prices so far below their asset backing, the VALUE of each share improves markedly.


Share buybacks also indicate two other things -

(1) the company is in a healthy cash position, such that they CAN AFFORD to buy back shares. That sure beats being short of cash, as so many juniors are at the moment...

(2) If the shares you own are subject to a buyback, YOU PROBABLY OWN A CHEAP SHARE, because the directors believe the shares are cheap enough for the company to buy back.


Eventually, unless someone raids the company for its cash and receivables, or a resolution is passed that returns cash to share holders, BTV will eventually make a purchase in the resource sector of some sort. I don't know when or what that may be. But what I DO KNOW is that BTV is trading at less than half of its NTA, and below its cash position. So they is plenty of MARGIN OF SAFETY.

And the market always catches up with the cash, sooner or later.