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iShares Silver Trust Message Board

roerules 4 posts  |  Last Activity: Feb 14, 2014 12:52 PM Member since: Sep 26, 2000
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  • Reply to

    Weight watchers

    by nahid666p Feb 14, 2014 11:52 AM
    roerules roerules Feb 14, 2014 12:52 PM Flag

    I agree, jessica simpson is fat as He11. When I saw recent commercials I thought "why would anyone want to go on weight watchers after seeing her?". It makes no sense whatsoever to use her. What are they thinking?

  • Reply to

    My Concerns

    by roerules Jan 27, 2014 9:34 PM
    roerules roerules Jan 28, 2014 12:39 AM Flag

    Yes, good points. However, keep in mind that the business itself is not that significant to the valuation. The cash dwarfs it. In my opinion the discount is due to concerns about the cash. Increasing borrowings, insignificant buybacks, and potential new share issuance coming due to the F6 filing. These are red flags. There is no rational explanation for not buying back shares at these levels. Why worry about tiny interest spreads when you can buy your own shares for 70 cents on the dollar RISK FREE?

  • Reply to

    My Concerns

    by roerules Jan 27, 2014 9:34 PM
    roerules roerules Jan 28, 2014 12:26 AM Flag

    Yes, I understand. But it seems like a lot of trouble for little return. Any gains they might make could easily be wiped out with currency fluctuations. It's not necessary. Also, the loans are growing each and every year.

    The buybacks are meaningless. There are more shares outstanding in 2013 than in 2012 due to options. Lastly, what is up with the share registration of 10 million new shares. They've been public for years and now they need this. Too many red flags for me. What can I say.

  • roerules by roerules Jan 27, 2014 9:34 PM Flag

    I have owned ACTS since 2009 from about $2 per share. Sold all 39,000 shares today. This company is basically a publicly traded checking account with a small inconsequential business attached to it. It is valued at less than net cash in the bank.

    My main concerns are:
    1) The company has taken on $31 million in debt, $10 million more than the prior year. Why on earth would a company with 120% of it's market cap in cash be borrowing money. This has become a red flag for me and calls into question the company's stated cash balance.

    2) Shares outstanding now stands at 70.9 million shares. Shares outstanding last year were 68.7 million. They are not buying back shares in a meaningful way as promised. Share buybacks with all their supposed cash would be the single best thing to do for shareholders.

    The additional debt taken on in 2013 and 2012 could have paid for the minor share buybacks as well as a portion of their annual operating expenses.

    Where's the cash?

    Sorry guys, I'm out.

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