06-13-2013, 05:22 AM
1198 commoncentsinvestor Dec 18 2012
Probably the best way to judge a companies decision making ability is to review the decisions the executives have previously made in the same area.
This is from the latest annual report:
"During the year ended August 31, 2011, the Company repurchased 1,106,895 shares at an open market, of which it paid $400,779 for 981,965 shares and $50,076 for 124,930 shares. As of August 31, 2011, the 981,965 shares had been cancelled."
So for the 1,106,895 shares that they repurchased, they paid a total of $451,000. At the moment, those same shares are worth over $708,000. That's a 57% increase in value.
I'd say that was a wise decision.
As for how they can pay for this new repurchase plan, I don't see a problem. They have no long term debt. They have sufficient current assets and cash flow and the great majority of expenses pertaining to development of G2 have been paid for. I also seem to remember reading that they have a substantial line of credit from which they have not drawn anything. And finally, if these new repurchased shares perform as well as the last repurchase plan, the profit involved would go a long way to paying for them.
This is from the latest annual report:
"During the year ended August 31, 2011, the Company repurchased 1,106,895 shares at an open market, of which it paid $400,779 for 981,965 shares and $50,076 for 124,930 shares. As of August 31, 2011, the 981,965 shares had been cancelled."
So for the 1,106,895 shares that they repurchased, they paid a total of $451,000. At the moment, those same shares are worth over $708,000. That's a 57% increase in value.
I'd say that was a wise decision.
As for how they can pay for this new repurchase plan, I don't see a problem. They have no long term debt. They have sufficient current assets and cash flow and the great majority of expenses pertaining to development of G2 have been paid for. I also seem to remember reading that they have a substantial line of credit from which they have not drawn anything. And finally, if these new repurchased shares perform as well as the last repurchase plan, the profit involved would go a long way to paying for them.
1207 brooklyn13
Need some help here: trying to figure out the Book Value of a share of DSNY. According to Investopedia, Book Value = Total Shareholder Equity minus Preferred Equity, divided by Total Outstanding Shares.
Destiny doesn't appear to have any Preferred Equity - As of 08.21.12, Destiny had Shareholder Equity of 3,281,000 (Yahoo Finance) with 52.1M Total Shares Outstanding. So that would make Book Value of .06, give or take per share.
What am I getting wrong, please?
Destiny doesn't appear to have any Preferred Equity - As of 08.21.12, Destiny had Shareholder Equity of 3,281,000 (Yahoo Finance) with 52.1M Total Shares Outstanding. So that would make Book Value of .06, give or take per share.
What am I getting wrong, please?