All this talk of buybacks is just plain foolish, especially now, when the company is losing money. The worst outcome for shareholders is bankruptcy (or having to obtain financing on unfavorable terms), and the more cash a company has, the less likely are those catastrophic events.
TDFX is in an enviable financial position. Some of its competitors are likely to go bust, not for lack of good products, but because of poor finances. TDFX wins by just surviving.
Reading between the lines, he seems to be saying "A share buy back is not a particularly good investment, even at these prices". Perhaps they need their cash for future trouble.
Mr. Ballard doesn't know the future any more than we do (well, maybe a little more). A buyback is not an easily reversable process.
I won't pretend that this is wonderful opportunity to buy into a company that has more problems ahead. I am not buying, management of this company is not buying, board members are not buying, the company isn't buying, so probably best not for anyone else to buy. In fact many of us continue to sell our shares."
Such candor would not be considered good "investor relations". <g> |
