Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: S. maltophilia who wrote (75317)	3/24/2024 3:25:27 AM
From: scbeachbum	Read Replies (1) \| Respond to of 78546

I think their current lending covenants limit their ability to repurchase shares or issue a dividend. With the remaining authorization for share repurchases they should be finding a way to retire shares, especially while this is cheap. I see it time and time again, companies aren't as aggressive with that when shares are cheap and they wait too long. BIG did buy back almost $700M in stock the last 5 years, with a lot of those repurchases in the 30-60 dollar per share range. Right now book value is about $10 per share, so any repurchases would sure be accretive to that. The other thing is the sheer level of short interest, that's very high and if those shares are forced to be repurchased, it would help with upward pressure. Effectively BIG probably doesn't even need that much to retire a good chunk of shares and drive a short squeeze themselves, sort of reminds me what Porsche did with Volkswagen and they could engineer here.