I don't understand why everything is a conspiracy for you guys and why you are so negative. Shaws are not capping the price, markets are simply bad. Almost every small resources company has been hit hard.
The shares are cheap, therefore the company is buying them back. This is a good thing. Debt is under control, which is why they can use cash to buy back shares. Companies with too much debt do the opposite, they try and issue shares - eg Paperlinx today.
Cashflow is strong enough to support drilling and the buyback. Again a good thing. Dividends would be unfranked and would not increase shareholder value. That said I would be in favour of a small dividend as a signal to the market of sustained profitability.
As I said before I don't think the company will buy back a huge number of shares. At least now shareholders who want or need to sell can do so without causing the share price to free fall based on small volume.
AMU is not going to double overnight. However, if oil stays around $100 and AMU maintains its recent drilling success, I expect the share price to near double over 2 years. Patience is required. If you want to double your money quickly, bet on black. Of course the little ball may land on red...
Just my opinion
Monty
Add to My Watchlist
What is My Watchlist?