Forum Topics RUL RUL Buy back of Shares

Pinned straw:

Added 7 months ago

RPM just announced that they are extending their existing buy back further till 13 June 2025 ( and intend to purchase further ~11m shares )

It started buy-back program in June 2022 and so far purchased 12.5m shares at an average price of $1.63.

Another bit of news is that their cash balance is 32.2m as of 27th May 2024 ( their cash balance was 23.2m at the end of 1H2024). [ They also continued purchasing shares on the market from 1H to today so considering that operation is as usual second-half weighted and business is as usual in my opinion]


mikebrisy
Added 7 months ago

I assumed the buying was continuing anyway, so didn't expect the announcement yesterday. (I overlooked they have an annual requirement to update).

With yesterday's mini SP pop, they only got $28.6k worth of shares bought back before the SP increase stopped them. Their usual allocation is $50k but they appear to have some rule about not shifting the opening price my more than x%.

As @Valueinvestor0909 points out, the update on the cash balance is good news. Strong cash receipts clearly coming through in H2, points to a good FY result.

But I do wonder, at what level the Board consider that buying shares isn't value-adding? So it continues to be interesting to observe the buying behaviour.

21

Valueinvestor0909
Added 7 months ago

I think one of the reason board is buying is to make sure it doesn't become target of low ball takeover offer.

21

Mujo
Added 7 months ago

Agree, the impression I get from management as well is that being acquired is the end game.

21

thunderhead
Added 7 months ago

The CEO has form in that area, so it won't be surprising. Hopefully it is a generous premium if it eventuates. Will be a hard pill to swallow after also losing ALU recently though for me.

13