Share Buyback ... am I the only one drooling over the possibilities? .............
During the cc, they sure made it a point to explain that the ten percent (10%) restriction regarding the share buyback is tied to the annual shareholder meetings. Having said that, let's run some numbers.
Last year, their annual sh meeting was held on December 11, 1997
The CREAF shareholders will vote on the buyback this November 6, 1998. Assuming it passes, and if this years annual meeting is held at roughly the same time as last years, the top guns at Creative (Sim, Hock Leow, and Craig McHugh) will have approximately five (5) weeks [or 24 trading days - no trading on Thanksgiving Day] to purchase up to 9.3 million shares.
Let's see...plugging the numbers into my trusty calculator ... that means Creative will need to purchase approximately THREE HUNDRED EIGHTY SEVEN THOUSAND FIVE HUNDRED (387,500) shares per day each and every day! Or, let's say that they like to trade every other day, then they would have to buy SEVEN HUNDRED SEVENTY FIVE THOUSAND (775,000) shares every other day. Anyone else think that this kind of buying pressure would push the stock price north?
Of course, the above analysis is predicated on management's belief that the stock is currently undervalued. If I recall correctly, Sim thought the stock price - many moons ago when it was at roughly $20/sh - was "ridiculously low". It seems to me that the Top Guns have no choice but to purchase all 9.3 million shares before the next annual meeting. Then they would have a full twelve (12) months to purchase the next ten percent (10%).
Now this sounds AWEsome to me!
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