Quote:
Originally Posted by
McGinty
Here's how I see it:
- Grant has lost it being quoted saying "This positive outlook supports the Share Buyback initiative” in the same announcement which is warning of a possible downgrade (Either that or he's talking fluff).
Or perhaps Grant Baker has a time horizon longer than one year?
Quote:
- Directors may know about the business, but they don't know the first thing when it comes to understanding how market sentiment works (and how it can work against you)
You give management no credit for dropping the regular conversion of capital notes which ends the 'gaming' between notes and shares in the run up to each conversion date? Or the recognition of not endlessly issuing new shares that will depress the share price in the medium term? Or the lesson learned from not having a pro-rata rights issue?
Quote:
- I would even question if the directors are any good at investing as they've failed to generate a positive return in their own TRA holdings (but we know they can certainly trough)
IIRC not many of those Business Bakery shares were issued at an equivalent price of greater than $2.50.
Quote:
- TA wise (due to the trapped holders) it will take ages (possibly years) for TRA to hit $3.30 again.
- This buyback won't hold up the price if it's limited to just 30% of weekly volume.
- The buyback is the last defence of the SP by the directors (as a buyback has previously never been mentioned as a part of TRA's capital management)
The intention of the buyback is not to 'hold up the price' or distort the market in any way (at least in the short term). The 30% sharemarket volume limit is Turners way of not breaking the rules.
Quote:
- They will struggle to maintain the current dividend unless market conditions improve, so a yield play this may not be.
Turners are only planning a dividend payout ratio of 60%. So profits would need to drop 40% before dividend payouts would likely be affected. And even then Turners can generate short term cash by reducing stock levels. They have done this before to retain dividends in the old TUA days.
SNOOPY