Hello Valuepro.
I don't think it's too little , too late. That would be tantamount to giving up and I for one am not there yet for the following reasons:
1. The line has been drawn in the market sand. For the board of a public exploration co. with one producing asset to authorize an issuer bid , serious soul-searching is a sine qua non. I was against an issuer bid at $5 , had mixed feelings at $4 and was in favour of one at $3 when it became very clear that CJ's market plea was ignored. The co. is trading below it's liquidation value - with no debt! - and while there appeared to be support around $3 , the TSE forbids margin below that level.
2. An issuer bid will only work here if the co. shows that its faith in itself is justified. IOW , we need news in the near future and the board would know that. We know news has to be coming - Marsfontein exploration , Camafuca and , oh yeah , Messina ; the board's action today would suggest to me that they believe that that news will be favourably received.
3. An issuer bid will afford a brokerage firm the opportunity to make some commission $ - when was the last time SUF paid any of these guys ?; a new motivated supporter.
4. Slice it , dice it , wrap it any way you want it - this co. is worth a lot more than $3. What we have seen lately in the share price is a confidence crisis in the market - I'm not suggesting wholly unjustified . This is a first step - not I acknowledge a cure-all - in seeking to restore that confidence.
5. Finally , and FWIW , I have considerable confidence that the 3 new board members would not sanction this action unless they firmly believed 4. above - they are "stand-up" people with a very good rep.
At least SUF is interesting again!
Regards. |
