It's never a bad idea to bank some profits. I sold my trading shares awhile ago, but will buy some more if we get back to the mid 30's.
I believe a company only needs to report shares outstanding and shares purchased on the quarterly report. They do need to announce share buybacks, which the already did last year.
From the last conference call:
Rick Nelson - Stephens
And do you expect turning the flow through agreement is going to be in that cost to Conn’s, to the retailer to source sales in the future?
Theo Wright - Chief Executive Officer
Yes. We would expect that if we entered into a flow arrangement, it would have a net cost to us. On the other hand, we would have significantly less capital employed. And our returns on capital would increase from levels that we experienced today. So overall, we do believe the flow arrangement would be modestly dilutive to earnings, but on the other hand our capital employed would be much lower.
Now you need to deduct the discount they will be giving to the folks taking the flow-through loans. Problem is we don't know that number yet.
I do understand the basic accounting, but when you describe a perfect scenario that allows Cliffs to run Bloom Lake at a profit without expansion which has
I was not talking about the portfolio sale, just the flow through agreement. I would assume that the company taking the loans over via the flow through agreement would take the loans at below face value. My concern is how much below face value. If you sell a billion in loans at a penny discount, that's a .30 hit to earnings. If you sell at a at a nickel discount, your earnings take a hit of about 1.50.
[ And Asia Pacific will generate over 4 million tons with a better profit margin than Q1.]
I believe that average SBIO prices are lower in Q2 then in Q1. SBIO bottomed in the end of April, which is in this quarter.
My problem is with your statement #6. Future earnings will depend on the flow through agreement and the discount they have to sell their loans for. I am assuming we will earn around 2.50, with a PE of 20 I can see a 50 stock price.