Jun. 4 at 12:34 PM
$ABR Thought of Day: Why would a CEO/CFO allow the price to book slip to a lowly 0.45 (reference y-charts website)? IMHO, It provides a stealth opportunity to buy back company stock at a major discount...which increases everyones ownership in the company, allows more dividend over less shares, and is majorly accretive to earnings. This is an efficient way to return capital to shareholders from a tax perspective. Leon Cooperman loves the question of stock buybacks when shares are below book - because he gets to owns more of the company. Don't expect Ivan/Paul to buy yet - they are better off being stealth and having the company buy "stealing" shares as long as they can. The company does not have to disclose until the quarter end.