(Total Views: 521)
Posted On: 01/07/2018 10:40:08 PM
Post# of 96900
Maybe we need look at the numbers-to determine what is being said. Nothing in the proxy has anything to do with an RS. Please, put that aside.
Presently we have 499MM shares authorized. The company wants to reduce this to 250MM shares. This requires no $$ to accomplish and has no effect on earnings per share. Ir's not even a bookkeeping entry - it's just a statement of fact on the Balance Sheet.
Assuming the Authorized Shares are reduced to 250MM, AND we only have 179MM currently outstanding, that means the company would have 71MM shares available for whatever (Executive comp, key employee comp, acquisition of other entities). If the company then buys back 100MM shares, then that would mean the company had 250MM authorized and 79MM shares outstanding. This all sounds good if it can come to pass.
However, I am having trouble figuring out how the company is going to be able to buy back 100MM shares with only 10% of the profit. Just as an example, if NTEK had 20MM profit, the buy-back setaside would be 2MM which would then finance a buy-back at $.02 per share - less than the current PPS. I hope there is something going on that we don't know about. It would be nice if some of the something could be forthcoming before the SHM. Here's hoping and I see y'all on the 19th. GLTA
Presently we have 499MM shares authorized. The company wants to reduce this to 250MM shares. This requires no $$ to accomplish and has no effect on earnings per share. Ir's not even a bookkeeping entry - it's just a statement of fact on the Balance Sheet.
Assuming the Authorized Shares are reduced to 250MM, AND we only have 179MM currently outstanding, that means the company would have 71MM shares available for whatever (Executive comp, key employee comp, acquisition of other entities). If the company then buys back 100MM shares, then that would mean the company had 250MM authorized and 79MM shares outstanding. This all sounds good if it can come to pass.
However, I am having trouble figuring out how the company is going to be able to buy back 100MM shares with only 10% of the profit. Just as an example, if NTEK had 20MM profit, the buy-back setaside would be 2MM which would then finance a buy-back at $.02 per share - less than the current PPS. I hope there is something going on that we don't know about. It would be nice if some of the something could be forthcoming before the SHM. Here's hoping and I see y'all on the 19th. GLTA
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