RE:RE:RE:Buy Back Shares vs. Make New Acquistionsbigask2013. I totally agree with your points here and they should (D & G) learn to think before they speak. As far as the dividend goes the buy back does exactly the same thing but in a better way I feel. Reduces the float so makes the remaining shares more valuable. Less shares for trading should lower volatility a little bit. And once you go the dividend route the shareholders will expect it instated on a permanent basis. This reduces management's future flexability if they need extra money to complete a deal etc. Everytime you pay a dividend it lowers the value of the company by exactly that amount that was paid. Way too soon for this company to even talk about this I think.
Going the buy back route like the new management announced gives them the ability to increase shareholder value and hopfully stock price to list on the Nasdaq sooner for example without a roll back in the stock, do it when they can afford to and cheaper for them, help smooth things over in time of need by helping take out the weak holders or help screw up the shorters as it will cost them more to cover with those shares retired.
When I heard new management announce this I thought great !!! now someone is finally talking sense. N3