Even though I generally don't think buybacks are done right, I do like the TCX buyback and think they are doing the right thing. Adding up the costs of the 7 auctions, TCX has been about to repurchase 28m shares at a cost of just under $0.80 a share. (That doesn't include the "Normal Course" buyback program, but I imagine the cost of those NCIB shares might have been purchased at an even lower price).
But what is interesting about the TCX buyback is that it hasn't really affected the market cap (when compared to market cap in 2007). From the 2008 Tucows 10K, "As of June 30, 2007....the aggregate market value of the common stock held by non-affiliates of the registrant was $67.2 million" . The TCX market cap right now is about $70m, which isn't that different from what it was in 2007 (even though the share count has dropped to 40m, from roughly 75m in 2007).
Still can't argue with the fact that the Dutch Auctions have generated some interest in the stock again.
One company that I recently purchased a small amount of shares in, CECO, seems to have really screwed up their buyback program. They have spent $800m buying back shares since 2007, but have seen their market cap shrink from over $2.5B to about $230m. Pretty friggin stupid management.
Well I like what I'm seeing.
The company puts money in the bank, and I'd rather see the buyback then a dividend.
(They can always do that later).
I hope they continue the trend and hopefully get to the point where we might do options.
I also appreciate the quiet board. The posts are way more positive than other boards.