Jun. 18 at 11:47 PM
$PERI I don’t know a lot about PERI & not presently invested. Here’s a crazy (but plausible) & hypothetical scenario. Facts - profitable (even after the loss of MS Bing),
$358M cash on 3/31/2025 & @ 45m shares outstanding.
If I were an employee, owner, given bonus in stock or investor, this would be my dream: PERI take @ 60% to 70% of cash & buy up shares over time at
$10 -
$14 range. They'd buyback around 22m shares. With reduced shares available, EPS would shoot up @ 100% . . . earnings per share would double without any additional growth. They still have a lot of cash on hand. If executed well, shares could go up to
$20-
$30.
The denominator affect tied to Buybacks is amazing: AutoZone, has heavy debt, neg working capital & large def tangible NW, went from
$159/share to
$3,603/share primarily due to buybacks over many years . . . as they eventually reduced outstanding shares by 90%, & EPS would go up every quarter . . . even if comp store sales dropped.
