OTCPK:TOUBF - Post by User
Comment by
whoa_rimcheeseon Jun 14, 2011 10:56am
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Post# 18712316
RE: No Buy Back .... and then issue more share BS
RE: No Buy Back .... and then issue more share BSA buyback AS SOON AS POSSIBLE makes very much sense. If the company announced a buyback today - share price would be north of 5.50. The reason a buyback makes sense is simply mathematics. If this is not a fraud, and the share price is fairly valued at $15 - tell me, when are companies presented with a potential IRR of 200% on an investment decision. This is a no-brainer. If they can buy, they should buy immediately. You are effectively making everyone's piece of the corporate pie larger and a 2/3 discount.
It seems obvious that a buyback or insider buying would not be appropriate until an investigation is complete. Otherwise, it looks even more shady. Insider's, if THEY KNOW the company is legitimate, particularly if PwC evidence is coming in very conclusive, would appear to be engaging in insider trading. Essentially, knowing the price will appreciate upon release of a favorable report. Not much different than buying ahead of financial results - hence the blackout periods.