a) EBT is currently trading on a P/E ratio of 5. That compares with both ALL and AGI trading around 25 and the overall sector at 16.
b) The buying window for our major shareholder re-opens on July 4th and if previous history is a guide, he will look to pick up another 3% of the company.
c) There has been continued downward pressure on the SP over the past 3 months. This has been done substantially with small numbers of shares being offered at just below the prevailing price.
d) Two reasons this might be occurring are:
i)small, virtually unmarketable parcels as a result of the consolidation are being offloaded
ii) our major shareholder is trying to set up a trading range in which to make his next purchase
Given EBT is trading at a discount of at least 50% to where it might be, I've viewed the past weeks as an opportunity to increase my holdings. I've noticed that at least one other person is doing the same with several 7,000 share purchases.
I'd be interested in what others might think of the continued offerings of these small parcels. What other theories might there be?
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