I thought it would be good to have a thread tracking the Clinuvel share buyback, or lack thereof, so the execution of the share buyback could be monitored and it would be easy to see how the Clinuvel "redistribution of capital to shareholders" was going.
More than four months ago on 14th March, the CUV SHARE BUYBACK was announced and the Clinuvel board of Directors explicitly said that market capitalisation was "decoupled" from the Company's value. This acknowledgement of the company undervaluation was followed days later by a comment in the newsletter that the trading in the days just after the BB announcement "dispelled the myth that the share price is reflective of performance only." That would be a reference to short selling and the 500000 fake Sell liquidity new open short positions pumped into the market to control the share price following the massive increased demand for shares following that BB announcement, without this IMO the price would have surged into the mid $20s (Wakey wakey ASIC artificial market manipulation). In the four months following the buyback announcement there has been further great news for CUV and no change in share price despite many market sensitive announcements - so what must the BOD think of the "decoupling" of value now? Surely it must be far greater and the urgency of the buyback to protect shareholder interests must be even more imperative now? Will the BOD protect shareholder interests and ensure the share buyback is completed in full, especially in light of continued market manipulation by shorters to counter any good news and control the CUV SP at 5 year lows, and also considering it is just what was said by the company and to maintain credibility it must be done?
Here is a list of some of the very positive news since the Buyback announcement which must significantly add to the Boards statement about "decoupling" of value from SP. Phase 2 trial for mega blockbuster Parkinson's disease to begin later this year. DNA repair assisted by afamelanotide. Orphan Drug Designation for XP and VP. Potential competitor Disc flunked EPP P2 trial and other potential competitor MT has to discontinue access to their trial drug, not only putting competition further away but opening up a large pool of EPP patients for Clinuvel to recruit for their super drug and continue the growth story. Also plenty more profits and cash would have piled into the CUV coffers in the last 4 months and the blockbuster Vitiligo phase 3 would have progressed. Not all of the above is Clinuvel's doing, but it has been a rather impressive few months with no change in share price despite markets being at ATHs. ASIC data clearly shows massive daily shorting in this otherwise tightly held and lightly traded stock, and many new open short positions, plus continual daily closing prices significantly below VWAP and whatever other games the shorter chooses to play. Basically the shorter has increased their activity to control CUV and Clinuvel has barely fired a shot with the Buyback despite fighting words. There are still nearly 1.5 Million shares to buyback. Some have suggested a blackout period may apply now but as usual Clinuvel leave us in the dark about that, why can't they just do what they say and complete the buyback without fuss as any other company which announces a capital redistribution does?
As a reminder here's what the Clinuvel board of directors said about the crazy undervaluation, and also what the company said in a recent newsletter regarding the share buyback (underline mine):
"Board of Directors view current market capitalisation as decoupled from the Company's value". PW said on the same release"Given expected earnings, underlying growth in existing and new porphyria markets, current cash reserves, and projected expenses over the next 12 months,redistribution of capital to shareholders through a buy-back program is appropriate".
"We have chosen the moment of a repurchase as first clinical results for 2024 are published, and we will keep at it until those who gamble against the Company have understood the message. Given the expected future cash flows, we are in the position to prolong the program when required, since Board and management do not believe that market value has reflected the Company's performance in recent months. To those shareholders who have proven supportive,we have waited for the right moment to strike on your behalf."
"The share buy-back further increases the relative percentage of ownership for our owners, and thereby compounds CLINUVEL'S strategy to minimise dilution.With 1,500,000 shares (or approximately 3% of the outstanding share capital) to be repurchased, we hold a longer-term view on capital management without jeopardising plans to reinvest and expand the Company."
"The first trading days after the buy-back announcement on 14 March dispelled the myth that the share price is reflective of performance only"
(20min delay)