If they thought the SP was undervalued by 50%, and reducing cash through a buy-back wouldn't increase their chances of bankruptcy or failing to be able to finance the legal process, then it could be considered an investment to do a buy-back.
Example: Spend $10m now to buy-back some shares at a 50% discount. Win TAFTA. End up being able to return $30m more cash to remaining share holders (because of less shareholders to share the payout). So $10m got turned into $30m for remaining shareholders, but the ones who participated in the buy-back would have missed out on that $30m.
But it has to be a realistic valuation (risk adjusted), and not put much pressure on the company.
Ann: Notice of 2019 Annual General Meeting and Annual Report, page-5
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Last
$1.29 |
Change
0.080(6.61%) |
Mkt cap ! $332.4M | |||
| Open | High | Low | Value | Volume |
| $1.23 | $1.32 | $1.23 | $1.790M | 1.402M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 11867 | $1.29 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.29 | 35188 | 7 |
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| Last trade - 16.10pm 18/11/2024 (20 minute delay) ? |
| KCN (ASX) Chart |