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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Sergio H who wrote (45506)11/16/2011 1:54:03 PM
From: MCsweet  Read Replies (1) | Respond to of 78462
 
Sergio,

With a stock this cheap, I think they have to take some out of the market (i.e., buyback). A buyback is accretive to book value and earnings. It still trades 20k shares a day -- I doubt a buyback will put that much of a dent into. 10-20k shares volume is enough for me, although I am ok with owning roach motel stocks.

I don't think institutional investors will every get that interested in this, unless the company sells more stock or insiders sell out their stock, which would lead to a seconday offering that would beat up the price and possibly dilute shareholders.

I am not that opinionated on it, though. A regular or special dividend would be fine too.

Thanks,
MC