Birchcliff stock was $6.65 a year ago; had they purchased 10% of that back then wouldn't it be very profitable for the shareholders now today at $10.15?
$BIR shares were $0.68 when I purchased my opening position. Whether $6.65, $10.15 or $0.68 is "profitable for shareholders" is in hands of the market, and we elect directors to make those judgments. The issue is not whether $6.65 is less than $10.15 but whether it is less than intrinsic value and that may or not be the case depending on future natural gas prices. Shareholders only realize a profit when (1) they sell or (2) they receive a dividend. A dividend is certain income; a buyback is a bet.
Birchcliff stock was $6.65 a year ago; had they purchased 10% of that back then wouldn't it be very profitable for the shareholders now today at $10.15?
$BIR shares were $0.68 when I purchased my opening position. Whether $6.65, $10.15 or $0.68 is "profitable for shareholders" is in hands of the market, and we elect directors to make those judgments. The issue is not whether $6.65 is less than $10.15 but whether it is less than intrinsic value and that may or not be the case depending on future natural gas prices. Shareholders only realize a profit when (1) they sell or (2) they receive a dividend. A dividend is certain income; a buyback is a bet.