Spending over half of the company's available cash on buying back its own stock, and paying a dividend in the company's second year of operations, (when the money is needed to build the business) is not IMO the right way to go. AGAIN, JUST MY OPINION.
CASE IN KIND >>>>>>SMARTALK... using all their available cash to BUY distribution and revenues, sales of cards rising, more air minutes being decremented each month/quarter, rising margins and increasing market share. RESULT,,,, a stock that rises day by day..!
I can list you 100 + companies that are performing and producing the same way as Smartalk. PLEASE NOW SHOW ME 1 (ONE) COMPANY ON THE OTC/BB thats buying back its own stock, (with limited cash resources) and paying a dividend, with revenues circa $20 million.(RISING)
Joe:
I don't want to belabor the point, and I will drop it after this post. But as I read the above comments by the person in charge of acquisitions, I find this quite disturbing. He clearly states that he thinks the company is pursuing the wrong path. Right or wrong, I don't think that this debate should be conducted on a public forum. If MZ has accepted the fact that this is the path that Joe has selected, then what purpose does it serve for him to raise questions in the minds of shareholders regarding the wisdom of the current strategy.
I'm not in any way questioning MZ's competence. As far as I can tell, he is very good at his job. But I do wonder about the wisdom of these comments. I was one of the one's who encouraged MZ to continue posting when we had the recent discussion about the wisdom of company representatives disclosing so much information. I'm a strong advocate for open channels. But I think that when a company makes a decision, that the management team should get on board. And airing dissent (or whatever you choose to call it) to shareholders can have very negative consequences.
That's all I will say, and I leave it to each person to draw their own conclusions. I'm still a strong supporter of DCTC, but I do feel more wary now.
PA |
