• bullchin
    BAM . Stock up with small lot trade is not a good sign. Must be the buy back program.
    9/6/12
    Reply (13)
    • Arkeh Capital: What is the logic in this? If the company bought back the turnover would be significantly higher.
      9/7/12
    • Arkeh Capital: And also: if the company buys back below BVPS it would be asymmetric risk reward. Espeicially with short interest at c10 trading days
      9/7/12
    • Arkeh Capital: Stock 50% down means you buy below BVPS. Before the drop you would have bought on 2 times book.
      9/10/12
    • Arkeh Capital: Fine with me if they idle a plantt. Points to cost decipline and margin awareness. What could be worth than pressing output into clients?
      9/10/12
    • bullchin: Perhaps it means it will continue to slide till profit margin begins to grow.
      9/10/12
    • bullchin: Idle plant means cost saving and that would be right but then spend another 100 million on buy backs? Duh?
      9/10/12
    • Arkeh Capital: H2 sales are higher than H1, their book is closed for 2012. They know what they need to produce and what they destock in inventory.
      9/10/12
    • Arkeh Capital: Leaving share buybacks aside (financial cash flow or use of cash) they will end the year with positive free cash flow.
      9/10/12
    • Arkeh Capital: Compare GTIs debt vs any other company in the steel area. Their balance sheet is way healthier.
      9/10/12
    • Arkeh Capital: And I prefer them usung their balance sheet for buybacks rather than acquisitions for as long as their own stock ttrades way below value
      9/10/12
    • bullchin: Hopefully positive cash flow, Past 6 month is negative cash flow. True their debt is lower but so is their cash flow than other steel.
      9/10/12
    • bullchin: I think it would be better if they just conserve cash to weather the coming recession and borrow to keep afloat.
      9/10/12
    • bullchin: It will be tough for them to borrow in the near term with negative cash flow.
      9/10/12