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Silicon Valley Bancshares (SIVB) Message Board

  • brotherbucks brotherbucks Jul 22, 2002 7:46 PM Flag


    Last MARCH the BOD authorized a $50 million buyback.According to the cc,they have bought less than $9 mil!!! These guys have excess capital of several hundred mil !!!They could finish the $50 mil this month and authorize another $100 mil and not hurt their capital position. What are they waiting for??? No purchase is on the radar. Hey BOD/CEO, how about looking after your shareholders?!?!
    You could buy back 5 million shares at this price without blinking!
    Big money funds--- call these guys up and tell them no more support until they see a much more aggressive buyback program!
    Put your capital to good use-- for a bank to put their capital under the mattress is unconscionable!
    I have been a supporter of these guys for years but they are loosing me by their apparent waffling.

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    • bb,

      Your post was before today's hits to Citigroup, down 15.73% on 121.5 million shares [the average daily volume is 15.7 million], and JPM which is down as much or more.

      The old saying is you don't relieve yourself outdoors if the high wind is blowing right back towards you. Or, don't use a squirtgun on a bonfire.

      Look at the positive side. If you were running the SIVB buyback plan, would you be rewarded if you'd already spent half of the $50 million and then the stock dropped from the mid $20 to $19.16 on today's close? I hope that the administrators still have $40 million and they wait until another 4 bucks gets thrown away off the market price, then they start buying those shares. There's a lot more capitalization bought back at the lower price than if they'd spent the buyback funds at a higher price. Plus, they get to squeeze a lot more shorts the lower it goes.

      The entire financial sector is either in for one large dislocation or this is bargain basement shopping season. Maybe some of both. Good things will come to those who wait, especially if they have money with which to buy stock. Patience.

      • 1 Reply to TAvery49
      • I appreciate your comments re buyback.Your reasoning was more valid when we were at $33 and change.Since no one can pick the bottom they should be buying now (IMO)as this may not drop $3 or4 more.Remember that the company believes that the buyback was accretive above $30+.I personally don't believe it makes a big difference if they buy at $16,19 or 22. I am concerned if they continue to wait and the price drifts back up. Timing the bottom is not the game they should be playing.
        I also believe they should authorize another $50mil(at least)--their excess capital is HUGE.If they did they could buy $1mil per day and it would take 90 business days to conclude. Let's get going.

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