Thanks Broomy,
That is the other thing revealed by announcing a buyback and then not buying back shares - WHY the buyback was announced.
If the reason for the buyback was a genuine attempt to add value by reducing the number of shares on issue at a fraction of their fair value, then that is what you do - actually buy them back.
If however, it was announced for strategic/defensive reasons, then non-buying back tends to support your rumour.
But the trouble is, if the cappers work out that CFE are holding their fire and have no real intention of spending any money, it allows them to push the price down again. You have to make the threat of the buyback CREDIBLE. And even a few miilion shares bought back achieves this. Buying NONE says they can disregard the threat.
And as Mr3t pointed out, many shareholders would help support the price if the company took the lead. The company buys a few, the shareholders do the rest. (i personally recommended CFE to a friend last week, in part because of the risk/reward, but also because the buyback gives new (and old) purchasers of CFE the confidence to buy, knowing Tony has your back. :)
A few hundred thousand dollars spend... a big bang for your bucks.
Come on CFE, send a strong message to the market!
Yaq
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