I just want management to do what they announced to the ASX more than one year ago. PW also made a video announcement and there were other releases related to the share buyback. Very, very weird they didn't actually do more than a minuscule amount of the buyback after all those words - I don't think anyone could have imagined they would do this after such fighting words and raising hopes and sentiment. After all they have splashed cash on Michelin catered Soirees, share grants and so on so why treat share holders so dismally by announcing a great share buyback and then basically not doing it? I estimate shareholder cash reserves are at about $210 Million and the buyback would only use a tiny amount of less than 10% of that so there is ample funds remaining plus profits are always flowing in (including a very large amount of bank interest). No one can say the share buyback has failed, it just hasn't been carried out and IMO buying back 1.5 Million shares and then deleting them will make a real difference for shareholders. There are only 50 Million CUV shares out there.
As a reminder here's what the Clinuvel board of directors said about the crazy undervaluation, and also what the company said in a newsletter regarding the share buyback (underline mine): (Note: since the directors released this there has been some really good news on very solid profit growth and great increases in NPAT and EPS, Excellent signs from the blockbuster Phase 3 trial, Same for results with children 12-17, Stroke results, EMA dosage increase Potential, Canada submission etc - so what must they think of the 'decoupling' now especially since the share price has fallen a lot since then?).
"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, andwe 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"
All IMO DYOR
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