thought for the day, page-10

Well, any attempt by management to address the situation of too many share on issue would be an admission by them wouldn't it. Yep, we did that, now we have to fix it with either a buy back or a share consolidation. As far as a buy back goes well, we issued x amount of shares to raise x now we have to spend x to buy x back.! Anyone else see the irony in this? LOL.
You have to look closely at the terms and conditions of most buy backs to see if they will work. In my experience they only seem to put a floor under the sp in the short to medium term and can be a very long drawn out process. Generally a company will state that they want to spend a certain amount of money or want to buy back a certain amount of shares. Whichever comes first. Mostly it seems to be they plod on until they buy back all the shares. And this is why. The terms are strict in the fact that on any given day the company can't pay any more than the agreed price or below a certain price. For example, if Nido said they wanted to buy back 300mil shares or spend 10mil$ whichever came first. they would be restricted to a buying range of 3.2-3.4. They can buy anywhere in that range so effectively stops it going under 3.2 but they can't buy over 3.4. So what your left with is sellers trickling in to 3.3 or 3.4 for an eternity. Now granted if the sp breaches 3.4 then they will have a different range to buy in, say 3.3-3.5. They won't keep buying up until it hits 8 cents it will cost them too much money. So what you get is a sp that's range bound. Simply speculation and a example only, and IMO of course.