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Forums > Karlfeldt & Delgado Capital Public Forum > Topic: Share Repuchasing

Aug 24th 2007, 06:38
Legolas Delgado 		Share Repuchasing
K&D Capital is currently considering using dividend funds to repurchases shares on the market or create a bottom line for the stock at around .53L$ per share so that people looking to buyout of the company can do so. The shares bought off the market would then be destroyed increasing the overall value of all public shares. We would like to point out that if all TGB shares are sold and the dividend capital raised is used to repurchase share of KDC the resulting effect would be the removal of roughly 7% of all shares and 16% of all none CEO shares. Please leave your thoughts about this in our forum section.
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Aug 24th 2007, 14:14
Dezmond Martinek 		Re: Share Repuchasing
I'm not real clear on your phrasing here Legolas, so correct me if I'm wrong. My understanding is you want to use dividends that would otherwise go to shareholders to raise the share price to 53 cents so that you can sell off your percentage of the company?
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Aug 24th 2007, 16:01
Ashleigh Wade 		Re: Share Repuchasing
I understand it to mean that he is selling off a part of the TGB holdings to place a buy order of KDC at .53. This will allow those interested to sell their stake in KDC at .53/share. The shares bought at .53 would then be removed from the total float therby increasing remaining shareholder's equity in the company.

It's a stock buyback plan - not a bad move in light of the economic situation. However, it may not play favorably with dividend hounds. As an equity player I would be for such a plan.
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Aug 24th 2007, 16:21
Kailen Juran 		Re: Share Repuchasing
I take it to mean that the share buyback would not be for increasing the treasury shares, but will be removed period, something like redeeming a bond. The net effect is that any future profits released as dividends will go to fewer shares, increasing the shareholders' percentage of the distribution.

I agree that a share re-purchase plan is a good move at this time. I'm not entirely sure if removing shares is ideal as treasury shares would generate dividends for the company, but then I'm not an economist. Overall, I am at least not opposed to it.
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Aug 24th 2007, 20:35
Legolas Delgado 		Re: Share Repuchasing
Simply put, all of the L$ that would other wise go to dividends on the 1st of September, would instead be used to put a bid for shares at .53 for KDC. The shares bought this way would then be destroyed increasing the value (equity) of all remaining shares.
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Aug 24th 2007, 21:17
Dezmond Martinek 		Re: Share Repuchasing
Thank you for clearing that up. I recently sold the major part of my KD shares but still retain a fair amount. I certainly wouldn't take issue with a decreased number of shares in circulation at the expense of dividends.
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Aug 25th 2007, 04:32
Cayman Beaumont 		Re: Share Repuchasing
My vote would go for dividend payments only.

I hope your not suggesting a buy back to help out a significant shareholder with a cash flow problem.

The compromise would be to spend half on dividend and half on buy back. If this was a regular monthly proposal then the share price will increase over time.
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Aug 25th 2007, 07:06
Kdmutual Planer 		Re: Share Repuchasing
Nope, Invester Allen has nothing to do with this movement.

I like the 50/50 idea, 50% goes to dividends, 50% goes to share purchasing. The 50% that goes to share purchasing will be used to create a bottom line for people looking to sell their shares. This seems to be a good perminint move so that over time the bottom line will build up. So that anyone looking to sell shares can do so at a comfortable price. I will rework, and reword the dividend policy then post in latter today. Thank You.
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