There's a BIG difference between Enterprise Group (TSX: E) aggressively buying back stock vs. Apple (AAPL) and Microsoft (MSFT) doing the same.
E knows that they could instantly sell off all of their heavy oilfield equipment and other valuable assets (like land/real estate) today and repay all liabilities and be left with a minimum of $0.70 per share but most likely $0.80+ per share in cash to return to shareholders. E will never do that because their business is BOOMING and they earned $1,678,048 in net income last quarter alone for an increase of 1,692% from one year ago!
What do you do in this situation? You aggressively buyback stock! It is the only reasonable/responsible thing for E to do!
With Apple (AAPL) and Microsoft (MSFT) the situation is the EXACT opposite!
While crude oil is in the 7th inning of its cycle with the biggest gains in stocks like E set to occur the months ahead, technology is past the 9th inning and in extra innings at this point with AAPL/MSFT desperate to prop their share prices up at artificially high valuations! AAPL/MSFT both know that the technology boom is over, their growth will soon turn negative, and their profit margins will collapse! AAPL/MSFT are wasting away shareholder capital by buying back shares!
E has nowhere to go but up vs. AAPL/MSFT have nowhere to go but down!
NIA's President is focused on accumulating Augusta Gold (TSX: G), which is his #1 favorite stock in the entire market!
E is the #1 single greatest opportunity in the oil sector similar to how G is the #1 single greatest opportunity in the gold sector! These are 100% facts!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA's President has purchased 169,200 shares of G in the open market and intends to buy more shares. This message is meant for informational and educational purposes only and does not provide investment advice.