PETROMINERALES COULD REPURCHASE THE 10% OF THEIR FLOATING SHARES.
The Board of Directors of the Canadian company decided that since the 1st of June of 2012 until May 31st of 2013, could engage in the repurchase of the 10% of their floating shares.
The oil services company decided to repurchase until 8.377.935 shares (around the 10% of the circulating shares in the stock market), but only will be able to do so by 178.469 shares per day.
According to the company they decided to do this operation because the market valuation of the share is way below the real price of the company. The strong balance sheet, the positive financial results and the know how and background of the company should be more appreciated by the investors. Also this is not represents the potencial value of the assets of the company.
This will take two strong repercutions. One is that the price of the share could increase the price in the short term, because the shareholders will be seeking for a profit margin, but also the remaining shares that will continue to circulate in the stock market will increase their price.
A good chance for investors that want a shor term profit. Which kind of investor are you?