RE: RE: RE: RE: Investman's Forum: Issue/QuestionThat is right, share buy backs are announced and then usually done over a designated time frame. Only way to eliminate buying back at a premium and reduce loss due to significant share appreciation, would be to do a lump sum buy back at the time of the announcement and retire the shares immediately.
A buy back not only instills new investor confidence but is a way of returning real shareholder value; and it would be real incentive for the insiders as well, they would benefit most by increasing ownership in the company. It's also often done by companies in place of a shareholder dividend.
Downside is lost revenue for future exploration. It would have to be a time when they had excess cash coming in to justify all the benefits of a share buy back over the probable company growth gained if it were all invested in new exploration.
But when would they have that much cash for a large enough buy back to make a meaningful difference in the float size and that would significantly increase shareholder value?