Paysafe Share Discussion Threads

[jim digriz] 20/12/2016 07:59

What fun. I've always thought it a positive of the company that they have been on the stockmarket a long time and they know what's what. This contrasts with some small companies who, the moment shorts turn up, do something stupid (like take them seriously, or have a rights issue, or panic sell up at some bargain price).

[marine boy] 20/12/2016 07:59

paleje, actions speak louder than words.

[toyin] 20/12/2016 07:58

Smelgys mum

They are being cancelled so cannot be awarded to directors later on, that can only be done if they are bought back and held in treasury.

All the best

[ihatemms] 20/12/2016 07:56

Oh dear Trance Man- we'd love to hear from you now!

[paleje] 20/12/2016 07:55

I'm not sure up to 5% over 12 months is enough to frighten the shorters, which is obviously what it's intended to do. The co should address point by point the concerns raised and unequivocally refute them with the unanimous weight of the whole board, ie their reputations on the line. That would kill the shorters...and still do the buybacks for good measure:)

[djbilywiz] 20/12/2016 07:53

Good news, buybacks at low P/E multiples are very good for shareholders IMO.

[smcmahon993993] 20/12/2016 07:46

Smelgys, instead of writing all of that, why didn't you just write 'I'm short and panicking'...? Get some sleep

[pshevlin] 20/12/2016 07:46

Combine the buybacks with the fund managers ho have been waiting on the sidelines and now find that ther will be a smaller pool of shares to buy from and you can see that the effect will be significantly magnified.This is the problem these shorters have when they attack a well funded company of this size. Globo it aint.

[aspex] 20/12/2016 07:44

So our buy back agent is competing in the market for the same shares that the shorters need.At 10% of the Mcap but literally just 100m quid they can outbid the shorters.Please tell me if I am wrong.

[eh9] 20/12/2016 07:43

ACQUISITION AND BUYBACK FIREPOWER: £100m leaves over $1.1bn firepower.


Paysafe have said they can borrow 2.5x proforma ebitda i.e. $293m x 2.5 x 2 (if target same size ebitda potential as Paysafe) - $150m debt outstanding at April 2017 = $1.3bn acquisition or higher if there were a rights and or some shares involved too.

[stockbob] 20/12/2016 07:42

well at least theres good news...just in time for christmas !

[tsmith2] 20/12/2016 07:41

Ouch; shorters

[qs99] 20/12/2016 07:35

they have said they are going to be purchased and cancelled so the main premis above is that shares are purchased and given to executives so this surely is different! DYOR and IMO, but the sooner they get on and do this at these levels, the sooner we will be back to a decent rating, which, if they are on the prowl for M&A targets may help with any stock issuance/fund raise....let's see...either way, this will be another nail in shorts coffin....

[smelgys mum] 20/12/2016 07:31

I am not afraid to say that I hate stock buybacks. Companies announce stock buybacks all the time as if they are doing the investor a huge favor by purchasing some of the outstanding shares. However, the truth is that most stock buybacks are not in your best interests as an investor and why this is the case.Conventional Wisdom on Stock BuybacksMany investing courses and texts teach that stock buybacks are an easy way for a company to boost earnings per share when other uses for the cash are not available. A stock buyback often results when a company is doing very well and earnings are great but they are unable to find an investment opportunity that can sustain growth.In light of no other viable investment opportunities, a company can use a stock buyback to decrease the number of outstanding shares. By reducing the number of shares, the earnings per share will go up even if the earnings stays the same, thereby creating earnings growth even without extra revenue.For example, let's say a company is earning $10 million a quarter and has 10 million shares outstanding. This company then has an earnings per share of $1. If the company decides to buy 10% of their stock back, the company then all of a sudden is making $10 million a quarter on 9 million shares. This company is now making $1.11 per quarter, an increase of earnings per share of 11% with no change in revenue.By increasing earnings per share, the shares will inevitably become more valuable, or so the story goes. While using cash to drive up earnings per share looks good on paper, it unfortunately rarely works out this way in practice. The problem is not that increasing earnings per share will not drive up stock price (it does), but rather that stock buybacks rarely result in any meaningful change in EPS.Yes, you read that right: stock buybacks are justified by companies as a means to boost earnings per share, but stock buybacks rarely meaningfully influence earnings per share. This is why buybacks are useless to the typical investor.Why does this happen? Here are the major problems with this approach:Most Buyback Programs Are Too SmallOne reason stock buybacks do not have a significant influence on earnings per share is because they are too small to actually to shrink the earnings per share at a meaningful level to an investor. Consider Apple's (AAPL) recent stock buyback announcement, where the company announced they would be buying back $10 billion dollars worth of stock over a 3-year span.This amounts to less than 2% of the company's current market cap being purchased back over a 3 year period. This means that earnings per share might go up about 2% over three years as a result of this buyback, minus the growth they would have received by investing the money elsewhere.You might be thinking.. why would a company buyback such a small amount of stock? Well that is because..Most Stock Buybacks are not Meant to Raise EPSMany companies issue these small stock buybacks with no intention of raising EPS. Instead, these shares are used as part of compensation packages for executives. Companies often buy back their stock and then give it all away to their executives and vice presidents as a way to pay management extra money. Stock buybacks are where the stocks for stock options come from in older companies that have been public for a long period of time.There is nothing wrong with buying back some stock to reward executives who have run successful companies. For example, the $10 billion buyback on AAPL over the next few years is well-deserved as over the last 15 years they have gone from a struggling company to the largest market cap in the world at the time of this writing.The problem is that many companies that do these buybacks are not doing as well as AAPL, using earnings to reward mediocre performers and then have the gall to announce the stock buyback as if they were demonstrating their strength and boosting earnings per share, when their plan all along was to line the pockets of management.Of course, management cannot line their pockets unless they are actually selling the stocks they receive, which leads me to my next point:Many Shares from Buybacks Eventually Reappear on the MarketWhen companies give out stocks as bonuses to executives, these executives then sell the stock in order to get money. I can't blame them – they are being compensated after all with the stock. This stock gets sold to a shareholder like you or I and becomes part of the general shares outstanding once again.That's right, companies buy back stock and give it to executives. These executives then sell the stock, putting it right back on the open market. The end result is that the total number of shares outstanding does not change after the stock buyback (at least not as much as advertised).Long Term Stock Buybacks May Secretly FailSometimes the lack of a meaningful change in earnings per share is caused by the fact that stock buybacks often are never seen to completion. This is particularly true over buybacks which are announced that are covering a multi-year period. When a company says they are planning to buy back a certain number of shares over a multi-year period, this is something you have to take with a grain of salt.When a company announces in 2012 that they are re-buying stock in 2016, if they nix the program and stop buying the stock in 2014 when money is a little tighter, most investors will be none the wiser. It is not really newsworthy when a company stops a buyback program they announced a year or more in the past.As a result, be careful of buying on the news of a multi-year buyback program. In fact, I would not even consider multi-year buybacks as a plus for a company. The only thing I care about that far in the future when it comes to a stock is their projected earnings and growth opportunities.A Dividend Boost is a Much Better Service to InvestorsNot only as stock buybacks often misleading, but the simplest way to create wealth for investors is to give them the money directly. If a company was during well and truly wanted to reward its shareholders, it would boost dividends.When a company is doing well and is truly looking out for investors, they raise dividends or even give 1-time bonuses. Not only is money directly in the hands of the investor the best course of the investor, it is also the most efficient course. Companies who have the money to buy back stocks are often running on 52-week highs – buying back a stock that has already run is a waste of capital.

[eh9] 20/12/2016 07:28

10% buyback vs 5.75% shorts. Current tranche pre ATM 6% vs 5.75% shorts!No brainer boom

[lomax99] 20/12/2016 07:27

Love it: "to remain attractive at levels well in excess of the current share price".

[lomax99] 20/12/2016 07:21

Good news!

[herewegouk] 20/12/2016 07:20

For anybody short I just wanted offer you a huge ?

[qs99] 20/12/2016 07:17

back through £4 shortly IMO then! GLA

[pauliewonder] 20/12/2016 07:12

Ignore above...doh...good news though

[pauliewonder] 20/12/2016 07:11

Any idea when the agm is?

[fluid36] 20/12/2016 07:10

Patience seems like it may pay off now