RE:RE:Eldorado Gold to buy back up to 2.08 million shares !Don't quite understand this move at all by ELD CEO (presumably he's the chief instatigator for this kind of activity). The buy back is so tiny (less than 0.3% of OS) that it would not be expected to cause a ripple in the SP chart compared to the fluctuation due to other factors such as the PoG. And this is at the expense of spending close to $12M which could be a lot more versatile than a bunch of shares. For example, they could use that to buy more ICG shares for investment purpose (for a premium of say 40% in case some major comes courting for ELD's holdings in ICG).
I would expect the opposite from ELD. In other words, with an OS of $716M, as a CEO I would take an opportunity to raise some more cash when the SP is strong. As an outrageous example, by issuing 100M shares at $6/s for $600M for a dilution of 100M/(716+100) = 12%. The $600M cash would come in handy. It could even buy ICG?
There must be something wrong with the current ELD management. They seem to be oblivious about the huge danger posed by Greece (but continues to dump $B's into it), at the same time they seem to get lost in the weeds buying back some small number of shares for no apparent gain.
GH