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Q: I see an opportunity to be greedy when everyone else is fearful. In June 2021, AcuityAds Holdings sold a total of 5,665,025 common shares at a price of US$10.15 per share, for gross proceeds to the Company of US$57,500,003.75. As of the last quarterly report they still have the proceeds of this public offering sitting unused on their balance sheet. They have just announced a normal course issuer bid to repurchase up to 5,350,000 common shares. ATY closed at US$3.34, more or less unchanged today, after initially popping on news of their share repurchase. To me, this seems like a no-brainer for ATY: sell at US$10.15 and buy at US$3.34. At today's closing price, ATY could repurchase 5.35 million shares for US$17.9 million and still have nearly US$40 million left in the bank from their public offering!! I don't see any fundamental change in ATY's business prospects since June 2021. ATY is currently 1.6% of my holdings and I am wondering why I wouldn't keep buying shares at current prices until it reaches a full weight of 2.5%. What am I missing? Should I be greedy or fearful? I would appreciate your insights.
Read Answer Asked by David on April 22, 2022
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