Weeping for anyone falling for this...
Which makes more sense if you actually have a lot of cash?
A) To do the buyback, then issue 20 million shares for say, .35, for proceeds of about $7 million?
or...
B) To issue 20 million shares at .25, gaining cash of about $5 million...do a buyback, and then get the stock to .35?
You know, I could be wrong, but I would pick choice A. The higher it goes now, the more money they just blew collecting. If they had the cash, of course.
Of course, if you don't have the money, then sell $12 million more of stock, and use $1 million of the proceeds for a buyback to save your skidding share price.
People will then quit worrying about whether you will ever release the audit, and whether your numbers are right... because it LOOKS like you have money. Very shrewd.
By the way, Andrew, DCTC, a BB stock, announced a buyback, as well as a dividend, just over a month ago. They said they would repurchase up to $5 million of their stock.
The stock has gone down since they announced it.
Countdown to E-Day (Audit Excuse Day): 5 days...tick...tick... tick...
Looking forward to the next excuse,
L.E.
P.S. If they are going to get the Miami and Long Island offices open in February, they've got two days to fit that in.... hope nobody went on a hunger strike till they were open. Do plans for these offices actually exist? |
