Monday, September 01, 2014 8:19:20 PM
melehuna, did you notice that I just earned $15M in cash flow for the company?
Suppose SIAF deposits $5M and orders the investment bank to repurchase 12M shares. Solomon will lend them his shares, and they will be returned to the company and canceled.
A year from now, it turns out that the average purchase price was a lot higher than 40 cents. Big surprise. So the company will have to put up another $15M or so (or return shares if they don't have the money). But that's a year from now
Suppose SIAF deposits $5M and orders the investment bank to repurchase 12M shares. Solomon will lend them his shares, and they will be returned to the company and canceled.
A year from now, it turns out that the average purchase price was a lot higher than 40 cents. Big surprise. So the company will have to put up another $15M or so (or return shares if they don't have the money). But that's a year from now
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
