this guy is buying more shares back.., page-20

dmaleny,

Its clear that if you buyback a large % on any trading day, you can support the price short term. The cost can be very large though. Friday's effort was close to half a million dollars.

The concern is what happens when the buyback buying support stops?

The market will always find its own level despite attempts to move it up or down. I have always thought that spending precious cash on buying back shares only ever produced a short term effect. The cheer squad response has been that hey, more capital can be easily raised at a higher price, so the buyback loss of cash can easily be replaced.

Do readers still feel its that simple?

In the last 3 weeks, about 100 million CDU shares have traded. Thats hardly a sign of a so called tighter register from buyback actions of the past.

I have always had more faith in a price support level that is created from real buyers as compared to buyback activity. The lurking suspicion is that the price will fall once the buyback support is eventually removed.

At least in the short term, it does give holders a chance to be out at a stable price for now, so it may be fortuitous for some.