Trading on Good News, page-43

Hi kmuirhead,

the board can do something. As I wrote before, the difference between STX and other small caps is that they make 100 million AUD per year. So cash growth occurs on its own and not through capital raises. It would be easy for STX to invest 10 million AUDs in a share buyback program (approx 50 Mio shares). That would be enough to stabilize the share price at 25-28 cents. This level would be a good floor price. Shorters would be in trouble, not just because of the purchase, but rather because of the unpredictable timing of the purchase. To defend short selling, you must attack short sellers at their most vulnerable point - TIME. They pay to borrow a share AND contracts (shorts) must be fulfilled AND there are deadlines to close/turn (CY / FY / Q). If you unexpectedly counter-invest on a short attack, it will be too difficult for them to do a "predictable job" and that makes a “short victim” unattractive to them - simply because of the risk.

For STX, the 10 Mio. AUD invest wouldn't be wasted, because the shares can be used for example:
- as a bank/credit security (instead of issuing Options)
- as bonus/incentive for employees (instead of issuing Options)
- as "prevention" for a takeover

Finally, the bought shares at around this level would also rise in value, so no loss of anything. In addition, STX would also be able to sell some shares if they would need money and it would show companys confidence in its projects.

10 Mio AUDs is just an example, it could be less ore more and there is no need to invest it all at once. It's more a flexbile budget that can be used, whenever it's needed.

cheers at all stirke(rs)