Co. has already announced its interested in selling off plastics division. Co. needs every penny to pay dividends and retire debt over next qtrs. We are in ctb until at least late Dec.(you know what that means), or until huge speculation in tech and biotechs ends in next month or so. Earnings may again mean something in future. It is hilarious...I just heard an anaylst "pumper" talk about one of his stocks that was down a bit. He said investors didn't fully understand the co., how a price evaluation couldn't be fully understood for the co. in question. Well, we know what that's about, dont we? Pure bull----!
I wrote to Investor Relations today and asked what CEO is doing to improve share holder value. At this current rate of decline in stock price I figure CTB will be worth 0.00 in 37 days. If I get an answer back I will post for all here. Don't get me wrong, I am long on CTB but really wondering why management is so quiet. A few little possitive press releases or some reassurance of future deals etc. might give the weak a little confidence to hold on to their shares.
Even with high debt levels CTB could raise $100 million for share buybacks. Gross yield = 25% (PE about 4 times less 5% after-tax cost = about 20% return or $20 million. This is better than 25 cent per share improvement in EPS and far better returns than achieved on acquisitions.