Earnings and Shelf

tpltblogger10 Comments

Press release , 10-Q , and Shelf

Hearty earnings and some reasons to feel good in the press release; namely the formation an M&A committee and the news of developing desalination technology.

The shelf filing is the next logical step in the post share authorization process. Whether management intends to issue shares or not, having this filing in place makes life easy should the need arise.

My two (easily predictable) opinions:

  1. Too much cash on the balance sheet ($837MM or 6.5% of market cap). I’d like a nice, tax-efficient, buyback please
  2. Stock issuance in the case of TPL is like selling shares of a money tree who’s annual payout rises in step functions. Any current price is likely way too low (Don’t dilute me bro)

10 thoughts on “Earnings and Shelf”

  2. Patent application for the water process is great new twist to the TPL story. Only spending $10M on share buybacks is hard to understand with so much cash on the books.

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  3. I believe it is easy to understand with all the disruptions occurring in the first quarter of 2024. The lawsuit over Proposal 4 being appealed and resolution of the issue was uncertain until the end of February, then with resolution the effort required to implement the 3 for 1 stock split to meet the courts requirement for the stock split as a condition of approving the increased share count. The strong increase in TPL’s stock price from the first week of March to the end of the quarter doesn’t look to me like a good time to have been buying back stock especially if those funds are earning a decent return.

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      • I was looking at the chart when I wrote the comment. Obviously, we don’t see the same thing. I see a Death Cross back in January and a declining stock price until mid February while the appeal was playing out. Not a good time to buy because no way of knowing how low the price was going to go. Stock price below the 20 day SMA [Simple Moving Average], which was below the 50 day SMA, which was below the 200 day SMA. It started to turn around and got almost up to the 200 Day SMA by the end of February and then declined until the second week of March when it started a nice run up due to the 3 for 1 split? But no way of knowing how high the price was going to rise. That is what I see looking at the first quarter of 2024.

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  4. But we are talking about the 10 million share repurchases in I believe the first quarter of 2024. Which by the way is not mentioned in the earnings call transcript. How much of the 250 million share repurchase authorization is left? Which raises the question who makes the decision to repurchase shares Management or the Board of Directors.

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    • Oh. I’m talking about enacting a buyback plan with all available cash and most future cash. The current buyback authorization is peanuts. The process is that the CEO/CFO proposes the plan and the board approves it (if so moved).

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      • empire building is expensive.

        wish someone would check Tyler’s pockets, I’m missing 13 pieces of silver.

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  5. Nice to see Murray is on the acquisitions committee. That may help avoid something really dumb and dilutive happening.

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