Genesis Land Development announced on October 8, 2019 that they would be buying back up to 2,109,016 shares at a maximum price of $4.00 (+45.5%). They are committing an overall maximum $7 million of capital to the buyback program – which implies a maximum share price (assuming all $7 million is used) of $3.32 (+20.6%). This reduces the total share count to 40.07 million. The shares have increased 22.8% since our thesis was released on the back of this good news.
Here is our updated valuation based on the new share count (assuming all 2,109,016 are bought back):
The reduced upside is a result of the share price increasing substantially, however, we still hold the view that Genesis is severely undervalued and we are on board with management’s decision to return capital to shareholders in the form of a buyback at this point.
View our full analysis on GDC here