Pinned straw:
Discl: Held IRL 2.43%
NAN held their FY2025 AGM today. Only 2 things of note from the materials:
FY26 Guidance Unchanged but 1HFY26 Margins May Take a Temporary Hit
Doesn’t look to be a biggie, but good to have it flagged upfront.
Share BuyBack Announced
NAN is probably the first company that I hold that has an On-Market Share Buy Back Program and so this will be a good opportunity to have a detailed look as to how the buy back will actually benefit shareholders.
- At $161m with $32m cash generated in FY2025, clear plans on CORIS commercialisation and probably no immediate plans to acquire anything given the focus on CORIS, the $20m for the buy back program, as an absolute amount, looks sensible
- A simple back-of-envelope impact on the shares on issue doesn’t feel like this will make too much of a dent to reducing the volume of shares on issue, reducing supply and hence increasing EPS.
I conceptually get how I should benefit, but as I do not receive any direct tangible payment from it, I do still struggle to fully internalise and appreciate the “benefit”.
Am thus, a bit lukewarm on the buy back other than the potential for it to support the share price if there is sustained selling pressure. It does feel like management is throwing money into “nothing”, but this is admittedly potentially a naive and ill-informed view ..
Appreciate if anyone has any views on buy backs and whether this is a good or meh thing ...
I'm a bit ambivalent on this buyback too @jcmleng although not a large amount of money in the scheme of things I wonder if this is the best way to return funds to shareholders.
I'd be more positive about it, if it was done at a lower share price. Maybe a higher dividend would have been better.
The boys at Stocktake recently discussed Buybacks on their October 30th POD - so before this announcement was made and they made some interesting comments.
The general consensus seemed to be that if the a company valuation was high it wasn't likely to provide much, if any benefit to the shareholder and visa versa - maybe management think the share price is cheap, I don't know!
You can listen in at the 18 min mark.
https://open.spotify.com/episode/4bcAygFjOHt9Mljns1owho
I hold a small parcel of NAN IRL