what is management trying to do?Well that answers the debate on buybacks vs dividends and what happens to the share price.
So petroamerica thinks their current shareprice is undervalued. I think we are acutally trading at a slightly lower price then on the day of the news release. So where is the buying? They stated on the day of the news release that they could start buying shares? Where is it? Are they waiting for the shareprice to go down even more? If you thought the price was going higher wouldn't you buy back now?
Buy backs are used because they don't think they can make a better return somewhere else? So are they saying that el porton won't result in a better return? They farmed it out to save money right? Money they are going to be using to buy back shares right.
They talked about increased production and adding production. So with the buy back have they changed their minds?
They are paying over 10% on their debt. When the buyback news came out the stock was at .305 so instead of clearing the debt saving themselves the interest payments they will buy the stock increasing it's value by more than 10%? So shouldn't we be trading at .34 and not .30?
Now the market sees these moves and acts accordingly. What has been there reaction? It's loud and clear to me anyway.