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.
Debt is too high. They have no money to spend on buybacks or buying competitors. CTB is in trouble. They are not digesting Standard very well. Management is quiet because they obviously have nothing good to say.
I do not think the debt is too high for a buyback but think Cooper will hold off on such an action until they have "digested" Standard over the next two quarters.
This will be the biggest challenge for Cooper - a smooth integration of the company purchases.
This effort usually requires the direction of a dedicated team that reports directly to the CEO or CFO. To assume Cooper can integrate without a hard charging dedicated team will be a mistake. Also, hopefully they won't fall down the path of using overpriced consultants to acquire the acuisitions.