Such a weird situation here. I would appreciate anyones advice.
Shriro almost delisted last week, but has now changed their mind and will instead issue dividends/buyback. That’s good news for now, but that potential delisting worries me.
I don’t know how I would feel about owning an delisted Australian stock, I would get the dividends, but I could basically never sell.
I would lose any public insight into the company, which might lead too poor management decisions.
It shows that they can’t find a buyer or better strategic alternative right now.
That’s why I am not in this right now.
On the upside, the company would lose most of its public filing expenses (and after trying to speak with them the investor relations dept is definitely not their strong suit, lol).
Am I thinking about this right, or am I missing something?
Considering that the buyback was at a 0.1 AUD premium to avg sale price, the stock is illiquid, and the terms of the buyback were tax advantages, I cant fault them for this.
I have had some issue with their lease liabilities. I have included that in the EV calc. Consider that they now have only partial use (25%) of one warehouse and an office space for headquarters. So I dont understand why capital lease liability or net PPE would be increasing.
I recommend closing this position.
Management is not engaging with shareholders citing a 6 month long blackout period.
I reconsidered what it means when management sells into a buyback.
Better investments out there. There is an opportunity cost in this.
Such a weird situation here. I would appreciate anyones advice.
Shriro almost delisted last week, but has now changed their mind and will instead issue dividends/buyback. That’s good news for now, but that potential delisting worries me.
I don’t know how I would feel about owning an delisted Australian stock, I would get the dividends, but I could basically never sell.
I would lose any public insight into the company, which might lead too poor management decisions.
It shows that they can’t find a buyer or better strategic alternative right now.
That’s why I am not in this right now.
On the upside, the company would lose most of its public filing expenses (and after trying to speak with them the investor relations dept is definitely not their strong suit, lol).
Am I thinking about this right, or am I missing something?
Also you might find references to "insider selling", but this is actually participation of certain directors into the share buyback: https://webbackend.shriro.com.au/images/upload/files/2856758.pdf
Considering that the buyback was at a 0.1 AUD premium to avg sale price, the stock is illiquid, and the terms of the buyback were tax advantages, I cant fault them for this.
I have had some issue with their lease liabilities. I have included that in the EV calc. Consider that they now have only partial use (25%) of one warehouse and an office space for headquarters. So I dont understand why capital lease liability or net PPE would be increasing.