OTCPK:EUCTF - Post by User
Post by
xsnrgon Aug 26, 2015 9:22am
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Post# 24051872
Buy back program on DGLY
Buy back program on DGLYMoments after DGLY announced their share buy back program yesterday the stock rocketed up 20%. Now I am not saying all stocks that do buy backs go up in price (as one poster pointed out), what I am saying is that buy backs put tons of upward pressure on a stock. It's simple math more buying = upward movement, if you dont understand this you need to exit the markets forever and never come back. In those circumstances where the stock still drops just imagine what would have happened without the buy back program lol.
EUO is not one of those stocks we already have tons of upward pressure and today will probably be another green day. EUO + Buy Back = I can finally afford a house in the Toronto Real Estate market.
Ok enough blabber let's analyse the numbers.
DGLY announced a $2.5M buy back. Their market cap before the call was roughly $35M give or take which is about 8%. Let's wait and see what today brings but they will probably get much more than a 20% lift in the shareprice. In order for EUO to do an 8% buy back they would only need to invest $1.07M. Surely, none of the "keep the money in the company" people can complain about using 1 of the 16 upfront million dollars on that?
I also don't agree there is no sense debating this until the deal is done. I am saying the deal will NOT GET DONE if they don't clarify some things to us before we vote. If we are sitting at 13-15 cents a month from now after a set of great results the market has spoken and the deal should not proceed.