New $50M buyback announced

Just after posting Pera’s quote on any future buybacks (I’m always looking for ways to put our capital at work, and if I feel the stock is significantly undervalued we are going to continue to buy it back. And it is true, we are lending money onshore to buyback, but if we believed in the long-term story the Company which we do, I don’t think cash is going to be a problem over the long-term as the Company is going to generate a lot of cash), the company announces another $50M buyback program was approved:

On September 5, 2017, the Board of Directors of the Company approved a $50 million stock repurchase program (the “New Program”). Under the New Program, the Company may repurchase up to $50 million of its common stock. The New Program expires on September 30, 2018.

At the current price, that’s about 860,000 shares and largely offsets Pera’s recent sales of 1M shares. They also have $1,254,358.66 available under the Prior Program. It think this highlights smart capital allocation by Pera.

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At the current price, that’s about 860,000 shares and largely offsets Pera’s recent sales of 1M shares. They also have $1,254,358.66 available under the Prior Program. It think this highlights smart capital allocation by Pera.

Pera’s sale was not dilutive so it’s not an offset but anti dilutive.

Chris

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Pera’s sale was not dilutive so it’s not an offset but anti dilutive.

Good catch Chris. This is definitely true and the overall share count will go down. I was thinking about the float, which was increased by 1M shares when Pera sold his shares. The shares available in the float will then decrease by the shares that are bought back. The net impact of Pera’s sale and the buyback would be a small increase to the shares in the float. For me the float is important given the large short position. If the float decreases with a high short interest, a big earnings beat could result in a nice short squeeze.

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On September 5, 2017, the Board of Directors of the Company approved a $50 million stock repurchase program (the “New Program”). Under the New Program, the Company may repurchase up to $50 million of its common stock. The New Program expires on September 30, 2018.

At the current price, that’s about 860,000 shares and largely offsets Pera’s recent sales of 1M shares. They also have $1,254,358.66 available under the Prior Program. It think this highlights smart capital allocation by Pera.

Pera: we buy our stock back when we feel it is undervalued.
Pera: I just sold $1m of stock.

Ok, he has a ton and needs cash for yatches and whatnot, but still.

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