Dennis, CREAF is damned if they do, damned if they don't.
Sure, they could buy back 10% of the shares between now and the end of the year. (Actually, even less time, since apparently they are going to stop during the "quiet period" before earnings.)
But then the NEXT 10% will be bought over a period of a full year.
If they run up the price between now and the end of the year, they won't be able to support the price with next year's buyback.
I beleive that they are doing as much as they can right now, and that the strategy must shift next year. Right now, they seem to be supporting the stock at 17. I do think that they are going to try to hold it up around current levels till the end of the year, and then hopefully earnings will take it beyond that.
Next year, I'd suspect that the strategy shifts to reducing volatility during the panic selloffs that CREAF is known for. I don't think 10% is enough to keep a constant "floor" under the stock for a full year, so I think you'll see them switch to buying the dips.
The chart will tell the tale, but, unfortunately, it'll take a year to see what tale it tells. :) |
