the current buyback will mop up some liquidity from the market. This can support the share price and move it slowly upwards.
I am happy to wait till the company accumulates cash more than its current market cap. Sooner or later, it will have to do some more attractive capital management initiatives like dividend so Stokes can get $$ back for himself.
the other trigger is that broader investors will switch their money to value shares as people pull away from low cash generating companies in a high interest rate environment. So undervalued share like SWM will become popular again.
this share is now one third of my portfolio and is a high conviction stock for me. And yes, I only make concentrated bets which is not everyone’s cup of tea.
SWM Price at posting:
41.0¢ Sentiment: Buy Disclosure: Held
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