Buy back is just a statement aimed at hype creation by Gelfond the master of hyperbole and duplicity. Buy back is not a great option for a company aiming to grow by investing in new generation technology and JV based network growth. Both are capital intensive and imax is better off using the available credit line for growth.
The amount of lies this mgmt is capable of is disgusting. Of course , they would probably say buy back at some point if pressed for a schedule..vagueness is an art mastered over a long period of time.
Let me get this straight. You think that some months back Gelfond discussed a buyback to create hype. But he has no intention of doing it? A buyback would create excitement or hype as you put it. But why just discuss it once if you don't mean it? That creates nothing.
I don't think they'd have any trouble financially. They basically have no debt and their new credit line allows them to use $150M for buybacks as long as they meet certain covenants. I don't know what those covenants are, but would doubt it's something they don't meet at this point in time. If they actually did a full $150M buyback that would amount to almost 9% of shares at current levels.
I certainly wouldn't be upset if they did, but I'm not sure I'd consider it urgent. Yes it would probably give the shares a boost, but since I have very little desire to unload my shares anytime soon I'd probably just as well have them wait until they can do it with their surplus cash instead of drawing on their credit line.
I have no idea whether you intended to include or exclude me in that question but hopefully we can agree to be civil in our posts here and carry on. I did agree with one of your posts yesterday and did want to discuss but felt uncomfortable because of some of our head-butting. I'll give another try here ...
I am looking deeper than usual at various things around IMAX because I do get the sense that there is something in the wind. I have been here all along, I have heard the speeches and seen the announcements and there is something different - a change in the air. It may be what you were sensing when you were talking about changes in Gelfond .... yes, those changes are definitely there. He may be getting ready for a change himself. It may already be in progress. That IS speculation but speculation of what not whether. They changes and activities are there we just don't know what they mean.
He may finally give a kick to the "shorts" as he long promised or wished as part of that process. It also might help in preparation for him liquidating his own assets and/or selling the company but I don't think that would be his motivation ... he has more than enough money. It all has to do with legacy ... completing what someone has set out to do... making sure the loose ends are tied up. Financially I think it would be difficult because the operations and R&D, SG&A, and JV deployments all have to continue as well (competing priorities).
I also think that is (or may be) part of why he want Grauman's, and large-screen laser and is not that focussed on their profitability. He wants the marquee screen in LA and NY for personal reasons. He wants to ensure the large-screen base are not left-to-die for personal reasons. He wants to get that done or make sure that gets done before he moves on.
And that is all just what MIGHT be going on and MIGHT lead to or prevent buybacks.
How has Gelfond changed?....other than heavier pockets? I'm being serious here. I've only been an investor since 2009, but I see and hear the same tune out of the guy and the entire organization. I think the legacy he wants to develop has nothing to do with physical assets or brand equity. He's interested in MONEY. I hope his legacy is that he finally gives the long-term shareholders a reward for sticking by through the thick and thin. I'm not saying that 4 years of shareholdership is a long time, but $13 was a long time ago......maybe not as long as $3....but if I'd known at $3 what Avatar in IMAX showed me at $13, I would've loaded up much more then and not been #$%$ about performance now on may levels.
So, I ask again, what's changed in his tune, appearance, etc?
This board member change is an interesting one. I don't care to analyse it at the Micro level that Marketwatch has (i.e. are they a good fit). What interests me is the Mactro level. i.e. WHY did IMAX even need two new faces? Did these folks do a past favour to Gelffy and Brad that now is being returned?
What was the motivation behind even getting new board members, regardless of who they are?