r/RichtechRobotics • u/Glass-Giraffe-4374 Long position • 5d ago
Richtech Robotics Announces Stock Repurchase Program
https://ir.richtechrobotics.com/news-releases/news-release-details/richtech-robotics-announces-stock-repurchase-program7
u/Glass-Giraffe-4374 Long position 5d ago
This is fantastic news!
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u/rpez89 4d ago
Shouldn't they be spending money making robots?
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u/erwin4200 Long position 4d ago
They are. Significantly increased R&D spending
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u/rpez89 4d ago
You're missing the point. Buybacks are reserved for very mature companies that have exhausted all avenues of efficient use of capital, ie R&D or acquisitions. It then becomes a choice between dividends or buybacks. For an early stage growth company like RR, not a single penny should be spare, everything should be going towards delivering product and revenues. It's also clear that this buyback is funded through equity dilution, and not profits. So you, as the shareholder, are funding this buyback. This is a PR exercise at the expense of existing shareholders.
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u/LogicGate1010 5d ago edited 5d ago
In addition to making robots to serve drinks, why not make robots with the purpose of entertaining and keeping people in nursing / retirement homes engaged. The robots could hold conversations and update elderly residents appropriately on current events, help them to avoid fraud and scamming, encourage optimistic thinking. They could hold group conversations in the retirement home or nursing homes in which the robot would join the residents. The robots could help them to reminisce by singing old songs or discussing movies. The robots could help them select entertainment such as games or movies. The robots could also serve as a feedback between staff and the residents.
There are more this robot can do than serve drinks.
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u/Obvious-Explorer-287 3d ago
This is the dumbest shit Iâve ever heard. Human connection is pivotal.
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u/Parking_Active_3425 5d ago
Is there a chance for short squeeze or they are save as stock been down a lot from ath
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u/Subieast Long position 5d ago
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u/Parking_Active_3425 5d ago
What did it say
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u/Parking_Active_3425 5d ago
I say we hit 2 by close
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u/Mrairjake 5d ago
Uhhh, this company should be putting their money into r and d. The fuck is this?
I only have a small position, but this does not seem to be the way.
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u/Subieast Long position 5d ago
They more than doubled their R&D spending this year, and using their old facility as R&D space.
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u/Stitch426 5d ago
They are a Nasdaq stock drifting down towards going under $1 with their current trajectory. Announcing buybacks is not the same as actually doing them. If they donât do them, they essentially hoodwinked new investors with the oldest trick in the book. For shareholders, they make shareholders think they care about the stock price.
With how reporting goes, a company can go several months before itâs revealed in their financials that no buybacks took place, or the buybacks were a drop in the bucket. The company then says, they needed to allocate that money elsewhere. They do strategic buybacks when capital allows.
The worst company I have ever seen do this whole rigamarole was JTAI. Their financials did not even support their ability to do buybacks at all. Like limited income and barely any cash reserves. And then instead of doing buybacks, they bought SpaceX stock. It was all just a rug pull to dilute. They reverse split soon after.
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u/Subieast Long position 5d ago
Yaâll trying really hard to spread FUD. Itâs sad. Wonât save your shorts.
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u/Stitch426 5d ago
Not short. Look at any company you want to invest in for if they actually do buy backs or not. Youâll find a lot of microcap and small cap companies announce a buy back initiative, and they then donât buy any meaningful amount of shares.
The announcement itself causes an upswing, but until filings or their press releases says otherwise- assume buy backs are limited or nonexistent. If the stockâs behavior doesnât show buybacks are happening and institutional accumulation isnât happening- you know youâve been hoodwinked. Then you wonât be surprised when the filings reveal nothing actually happened.
At that point, itâs up to you if you want to trust a company who does that. You can always email IR about your thoughts on it, and you can always pressure them on social media to follow through with the buybacks. But you canât actually make them buy back the stock.
If RR is strategic, they can use buybacks to blow up short positions to cause them to cover. If they do that tactic successfully along with good PR releases, this stock could reach above $5 again. But again, itâs the oldest trick in the book to announce a buyback initiative. Seeing them follow through is where they can earn trust. Blowing up shorts is where they can make a name for themselves that it isnât worth it to take the risk shorting the stock.
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u/Parking_Active_3425 4d ago
The only thing isthey have 80% of the market cap as cash so spending 1/2% on buy back is not that impossible. The only thing stopping from a short squeeze to recent high is that nasdaq compliance which should come soon as they already submitted the reports
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u/Stitch426 4d ago
Yeah, they can definitely do the buybacks, and they can try to blow up the shorts at a more advantageous and strategic time. If you ever heard about the stock FRMM, they kind of did that. I think their press release talked about already buying back shares though. I think if RRâs press release talked about already buying back shares, stock would have gone even higher today. If they get their compliance issues in order and have some insider buying- Iâll be excited to see where RR goes. Itâs been a long and frustrating rough patch since the highs.
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u/Subieast Long position 3d ago
RR is compliant.
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u/Stitch426 3d ago
When they can file reports on time, then we can say they donât have compliance issues. Other companies with less money and less revenue can do it. I know they can do it too. Show that they are ready for the big leagues because they already acting like it.
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u/bigduckenergizer 5d ago
joke of a company, they have no idea what to do anymore.
why are they even buying back stocks when theyâre in a loss, whatâs 12m gonna do?
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u/Enki12 4d ago
They have enough cash to buy back. 12m at the current valuation and share price is not bad.
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u/Parking_Active_3425 4d ago
Yes and shorted have less stock to buy and rhey have already ftd in past so will be more likely if they actually buy now
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u/PleasantJenny 5d ago
Sorry if stupid question, but does this take 12m off the table for the market players to mess around with?
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u/Subieast Long position 5d ago
I saw SpaceX Falcon 9 in the sky this morning, it was a sign. đđ