AS - that is the pure genius of capital management initiatives. This co hasn't got much in the way of retained earnings - in fact this had accumulated losses up until 2015, so they thought a buyback might be a better way to return some of the funds from the IPO to deluded shareholders IMO.
Funny thing with this business is that it was acquired for $72m by the looks in 2011, they spent an additional $137m in 2012, and then another 85m in 2013, $45m in 2014, and $23m in 2015, and they had an extra $3m or so left over cash at the start totalling $365m roughly (I could net out the cash at the start but it is tiny anyway, and adjust a lot of other figures etc).
Today it is being valued at $1.1b EV (at $1.40 ps). So if I suggest a val of 80cps, an EV of about $748m, well that is a huge improvement on what it was acquired for- more than double the acquisition costs, for a simple industrial company. But I certainly don't think it is worth paying triple with no obvious improvements in net receipts or revenue over that period, even with so much extra invested. In fact - if all that money has had to be invested to stand still since 2012, that must bode very badly for the future IMO.
Maybe my numbers are out of whack - somebody correct me please if they are. All IMO, and back of the envelope calcs - so don't rely on me.
