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Re: LOL post# 29421

Sunday, 01/25/2009 7:32:52 PM

Sunday, January 25, 2009 7:32:52 PM

Post# of 86719
OK, now I'm backing up twice. There has been no share buyback announcement. Along with issuing shares and expansion comes an increased share price from the profits the company will enjoy immediately. Then they go straight to Nasdaq and a listing along with beverages analysts and institutions buying and giving the stock targets. They use those profits as leverage to buy other companies, introduce new products and pay off debt. One of those is announcing a share buyback plan. If they borrow money to do a big deal, and those shares are restricted, they are precluded from partaking in that plan until those shares come off restriction. Buying back shares makes the profit per share increase as the OS and the float is diminished. That results in a higher share price. One thing I should have added is that Labatt actually makes closer to $50 mil a year on net sales, but a good portion of that is earmarked for various charitable events. The tax structure favors it more here than in Canada.

The aforementioned is just the natural order of things. Of course, we would have had to submit a bid first. But it's nice to talk about anyways as it will be somebody here soon. Just a question of who.

If everyone is driving defensively, then somebody has to be on the offense!