I think you will find like Nowhere Man has stated in his post that MVH did the buy back for exactly the reasons he has mentioned. However, who would have known that the share market would dive like it has, with some companies now a third of their price, such as KSX. MVH had KSX as a back up, but with their share price absolutely hammered, their approx. $1.5 million in shares now is worth less than half a million. A crystal ball would be fantastic, and hindsight is a great thing, but if MVH need to raise some capital to get the business model off the ground to start rolling out MTC's, then I am more than happy for them to raise some cash. The re-occurring revenue business model of the MTC's will far outweigh the small amount of capital they may need to raise to get things up and running. From memory, each MTC will take 6-12 months to recoup set up costs etc, and from then on they will be cash flow positive, generating up to $1 million profit p.a.
Noggie Read disclaimer below
MVH Price at posting:
7.6¢ Sentiment: Buy Disclosure: Held
