As the share price keeps drifting lower and remains significantly undervalued I'm getting more convinced that it's in LF's and shareholders interest to do some sort of buyback. With $200 million in cash I still believe they can take around $50 million of that to repurchase shares and have plenty of money to fund operations and grow.
I'm only seeing $120 million in cash. $200 million is anticipated in another year as far as I know. I still think the company should do a buyback of maybe $10-20 million. Go ahead and increase R&D and create more products. Educational toys are a growth business while MAT and HAS are in a flat business.
I agree, a share buyback or announcement of a share buyback is needed.
An increase in value of the price of LF stock is not just beneficial to the shareholders. There are other positive effects that are overlooked.
A high priced stock will keep hostile take overs away.
(If you think announcing a share buy back is a waster of time for LF, compare that to the time and money that would be wasted on repelling a hostile take over.)
A high priced stock can be used by the company as currency for acquisitions instead of cash.
A high priced stock can be used to help boost company morale and provide better incentive for employees.
The cost of a share buyback can be less than $1 million and still have a great effect.
A buyback would not be meaningless, many of you are overlooking the benefits.