(Total Views: 723)
Posted On: 11/14/2018 9:15:53 PM
Post# of 75350
Questions for other investors here:
What is the appropriate number of shares for this company, given the markets it is in? With that number in mind, what will it take to restructure the share count to get to that number?
My answers:
No more than 800 million shares (about what we had in late 2016). My preference would be at or under 500 million shares.
Given that the current share count is about 1,650 million shares (1,750 minus 100 million retired in recent judgement), that is slightly more than 3 times my preferred share count, or about 1 billion shares that need to be repurchased by the company or otherwise dealt with. Assuming this happens at an average share price of 10 cents, it would cost an investor and/or the company $100 million dollars to retire those shares. At the current share price of 1 cent, it would only take $10 million dollars to retire those shares.
Thoughts?
What is the appropriate number of shares for this company, given the markets it is in? With that number in mind, what will it take to restructure the share count to get to that number?
My answers:
No more than 800 million shares (about what we had in late 2016). My preference would be at or under 500 million shares.
Given that the current share count is about 1,650 million shares (1,750 minus 100 million retired in recent judgement), that is slightly more than 3 times my preferred share count, or about 1 billion shares that need to be repurchased by the company or otherwise dealt with. Assuming this happens at an average share price of 10 cents, it would cost an investor and/or the company $100 million dollars to retire those shares. At the current share price of 1 cent, it would only take $10 million dollars to retire those shares.
Thoughts?
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