buy-back and nta improvement.

Just playing around with some calculations on NTA and SP after buy-back. Pleas correct me if I've made a mistake.


If we take NTA at $0.37, with around 138 million shares, that gives us approximately $51 million dollars in assets.

Buy-back is 13.8 million shares (or 10%).
After buy-back then, there will be: 138 - 13.8 = 124.2 million shares.

$51 million / 124.2 million shares = $0.41

That is, it will give us a 4 cent gain on NTA.

This works out to be:

4/37 * 100 = 10.8% increase to NTA.

So by doing absolutely nothing, holding FSA will gain us a 10.8% increase in value this year?!? And this is before we take into account growth and returns by the company.

Am I missing something? I understand the company is going to buy-back its shares from the market, but does this not mean it still keeps its value? In fact, are they not increasing their value by buying shares lower than their NTA???

If all this is true, it is remarkable.