Why Tucows Inc. Stock Soared in March
What happened
Shares of Tucows (NASDAQ: TCX) rose 12.1% in March 2017, according to data from S&P Global Market Intelligence.
So what
The provider of online business services and a budding bundle of mobile and fiber-optic communications products started March with a bang, announcing a brand-new $40 million share buyback program. For a company with a $476 million market cap at the time, that's a pretty serious and shareholder-friendly commitment.
Later on, longtime CFO Michael Cooperman announced an orderly retirement. The 65-year-old executive handpicked his replacement a year ago, installing Dave Singh as vice president of finance to ensure a smooth learning curve and transition. If that weren't preparation enough, Cooperman will also stay on in an advisory role for an unspecified period.
Image source: Getty Images.
Now what
The simple CFO transition removed a cloud of uncertainty from Tucows' horizon. Singh's background in telecom operations ensures that Tucows will continue its full-court press on the Ting-branded fiber-optic and mobile services.
And that buyback policy is a strong vote of confidence, especially since it expires in early 2018. Moreover, the company collected just $22 million in operating cash flows last year and the balance sheet only holds $15 million in cash equivalents. Tucows shares have gained a spine-tingling 130% over the last 52 weeks, but management is betting a downright audacious amount of money on further gains.
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Anders Bylund has no position in any stocks mentioned. The Motley Fool recommends Tucows. The Motley Fool has a disclosure policy.