If the main owner, the board, and management want to hear one shareholder’s silver bullet regarding liquidity and the share price, here it goes:
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Put the balance sheet to work. If the company is trading at an EV/EBIT of 8 and at the same time believes in its “rule of 20” target, I can’t think of a better and less risky “acquisition” than buying back its own shares. Try to acquire as many shares as possible through a tender offer at the current share price level. Leave only enough cash in the treasury as needed for the core business and capital expenditures. The company is already executing this well through its buyback program, but unfortunately, the capital is being put to work too slowly.
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Return cash flows to shareholders as dividends, which at the current share price would mean a dividend yield of over 10%.
Why do this? Finnish investors look at two key metrics above all others, and those are dividend yield and the P/E ratio. Both of these would improve significantly with these measures. Improved metrics will also land the stock in some Kauppalehti pump article once a month, guaranteeing visibility. The stock will also show up in investors’ screeners much more frequently. The first point makes sense in any case. The second point isn’t the best capital allocation (putting that money into share buybacks too would be best), but it is a solution to the main owner’s gripes about liquidity.