|PAST TOP PICK||$11.250||UNKNOWN||CANADIAN & HEDGING||Yes|
(A Top Pick May 24/16. Down 8.67%.) Exposed to the auto sector, and everybody is concerned about what is happening. He remains committed to the sector, and especially to this company. A tremendous organization and highly profitable. They are generating good return on equity. They undelivered relative to their competitors. Despite this, they are already producing 16% return on equity. Just initiated a normal course issue bid in February, which should provide downside protection for the stock and give management the optionality to buy back shares.
President & CIO, LionGuard Capital Management
In my opinion, NCIB is a smoke and mirrors ploy that is rarely exercised to any degree that benefits retail shareholders. This is especially true when companies announce a new NCIB, but in the past year have not purchased any shares under that NCIB.
Most often it is used to keep the share count from increasing too much (over the year) when management and insiders exercise rights, options or share purchase warrants.
To consider NCIB as a reason to think the stock price will not go down is a fools game.
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