Public Company Share Repurchase-Cannibals

[valueventures]

1 hour ago, thowed said:

@schin Many thanks for this, very helpful, I will go back to reports & calls to keep working on it.

 

I've been similarly looking at BLDR - a bit of overlap, and another one with stellar 5-year performance but has rushed down since peak at end of Q1.  Given how much they've gone up, not really a surprise to see a correction.  But unlike much else in the market, the correction has brought them to quite reasonable valuations again.

 

It feels like the market is so simple & binary at the moment, and part of the issue for these sorts of companies is 'interest cuts not happening now' = bad.  I don't think this should necessarily be the case if management know what they're doing.

 

Only thing I remember is that last results were quite disappointing, but just need to be happy that that was just one of those occasional blips anybody can have, rather than a frequent occurrence (though I know sometimes these things happen in threes...).

 

There is a 2024 Substack write-up and a VIC 2023 write-up which you've probably seen, but I can dig out links if helpful.

 

I’m looking at BLDR too. Do you have a view on BLDR vs. CRH? Thanks!

[thowed]

@valueventures Sorry for late reply.  I don't know CRH so well - but much more Global than BLDR for starters.  Thanks for pointing out - I should do more work for comparison.

[matthew2129]

NXST has a $2B buyback authorized as of Friday, with a market cap of $6B

[FCharlie]

On 2/28/2024 at 10:33 AM, Vish_ram said:

I own and like MUSA, the greatest cannibal

Shoutout to you for recommending this one. I own it because of you. This is what it looks like when a growth company tries to spend its entire market cap buying its own shares. 

 

[Vish_ram]

18 hours ago, FCharlie said:

Shoutout to you for recommending this one. I own it because of you. This is what it looks like when a growth company tries to spend its entire market cap buying its own shares. 

 

 

check out GWW too.

 

[KPO]

OLN has bought back ~30% since issuing shares for the reverse Morris trust deal with Dow. This is more of an observation than an endorsement of the company’s current prospects.  It actually looks like management executed a significant portion of the buybacks at (cyclical?) peaks in FCF and share price.  
 

No position, but worth watching given their willingness to return capital to shareholders.