TerraVest's Share Buybacks

Terravest has been buying back shares under its normal course issuer bid after the fiasco with Charles Pellerin caused a sharp contraction in share prices.

Recall this snippet from Chris Waller’s writeup on TerraVest:

Terravest also buys back stock from time to time, viewing the attractiveness of a buyback as about judging the return from its stock rising to intrinsic value vs the more certain return from making an internal investment. The company has not been afraid to aggressively buy back stock when it is trading well below intrinsic value, buying back 36% of shares outstanding in 2012.

Management usually knows the business better than outside shareholders, and its record suggests it buys back stock when it believes shares trade well below intrinsic value. If that judgement is right, this buyback creates value for the remaining shareholders.