RE:RE:Hopefully this won't go down the path of CTUWell, the buyback would have made a lot more sense if they anticipated for the company to turn around soon... However, there are obviously no indication of this.
It would also make sense if the plan was to liquidate or make a significant distribution to shareholders... but there aren't any indication of this either.
Until management's next steps are revealed, one does have to assume that they wasted extra-ordinary ammounts of cash on a hasty buyback program, which is very negative for the outgoing outlook of the company.
The buybacks just artificially boosted the SP from low 2$ to high 3$ while allowing for the bigger holders to use the liquidity to sell at a 50% premium. It is what it is.
sclarda wrote: Rosmorduc wrote<br /> <br /> They could have done a share buyback over time which would have cost a lot less at todays shareprices. And this would have also given some support to the shareprice. What is the point of buying back shares anyway? You want to buy back shares that are undervalued and as this company is not making any profits for quite some time now it is hard to say that the shares are undervalued. They should have kept that cash and bought back shares slowly with over time. Today they would have aprox. $120 million in cash and a lot more breathing room. <br /> <br />
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