Mike,
You may be right, but even at these levels, I would not back up the truck on such companies as DELL, MSFT, CSCO, or INTC. While these stocks have tanked considerable in the past few weeks, they could head further South.
If the company buys back 100,000 shares, they have essentially retired the 100,000 shares used to acquire the Fuji Fabrication Plant. I am sure TraderGreg would agree that any revenues or earnings generated from a company at a "ZERO" cost works out to a pretty good ROR and ROI.
As for using the money for other ventures, the company is sitting with over $1.2 Million in cash and 11 Million shares. If the company can continue to buy back shares that they used for acquiring companies and maintain a low OS count while increasing Assets, Revenues and Earnings, then I am certainly all for it.
As for this news bringing in additional buying, I would not bet the farm on that either. IMHO, in my talks with Mr. Pian, he is very focused on growing the company and I for one have no problem with him using cash to buy back shares. Remember, we just retired 10 Million shares. We have all kinds of shares available for additional acquisitions...:)
Brian H. |
