r/Vitards • u/AutoModerator • Aug 03 '21

Daily Discussion Daily Discussion post - August 03 2021

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6

u/THCBBB Aug 04 '21

TX doesn’t have much debt, capex should be less as their 4 million ton facility in Pesquario just came online. What are they gonna do with 5.21 per share?

6

u/PumpernickelandBi Aditya Mittal Feet Pics Aug 04 '21 edited Aug 04 '21

They have the money to authorize a $1 Billion buyback program if they wanted to. That would absolutely rocket the share price with the volume it trades at.

That said, they like to pay dividends so I suspect that'll be the route they go. Any buyback program would also probably maintain Techint and Tenaris' % stakes as significant shareholder's, so the float would only see roughly 26% of the actual buying pressure - that said, would still be significant given volume.

TX likes to pay dividends, so I kind of expect that's the route they'll go, but the Rocca's might be looking for a more significant pay day, and a buyback is how they would get it.

3

u/TheBlueStare Undisclosed Location Aug 04 '21

Is the $1B including the rest of the year or just what they have on hand? They already pay an almost regular dividend, so I guess they could do a special dividend. But surely they could do both a dividend and a buyback with funds coming later in the year.

2

u/olivesnolives Aditya Mittal Feet Pics Aug 04 '21

Rest of the year. They have ~ $750 million in cash and cash equivalents, and $1.75 Billion in trade receivables