At today's closing price that would be 26% of the Company! I suspect they won't buyback anywhere near $20M by April. They are just trying to put a floor on the share price. I don't even know where they will get the $20M to fund this. Their cash is down to $45M from $100M 2 quarters ago. Their lenders are allowing them to use cash for this purpose? Surprising to say the least. Let's hope for some positive cash flow from operations this quarter.
I think that we will see better cashflow generation n the second half, as the second quarter had a closure of the Parana. All that cargo has to get downstream anyway, and I suspect a lot of it will happen in the third and fourth quarters.
Figuring out their capacity to buy back stock is complicated because they have a fairly complex capital structure with different covenant packages on different bits of the company. They may well have $20MM of room in their covenants to do this.
I am concerned about the issues raised; at the same time, it was gratifying today to see ULTR's rapid rise along with my other Latin American stocks--all based on confidence going forward because of the European resolution. If ULTR had the degree of problems some posters have suggested, no way would we have seen this movement today.