share buy back

Hi All,

I was just reviewing the share buyback info, and read that the plan was to begin after the ex-date for the options - 6th November.

Well, clearly that date has been and gone, and we have seen no buying.

Personally, I hope the buying is up to 10 cents, and not just because it pushes the share price up. In fact, any buying below 18+ cents is value accretive to remaining share holders, as it increases the NTA PER SHARE.

If you doubt this, take the share buyback to its logical extreme, where EVERY SHARE EXCEPT FOR YOURS is bought back and cancelled, say at 10 cents. Irrespective of the size of your holding, you would then be the sole owner of the company with over $1m cash, about $1.5m of other shares, and $10m of receivables (with the next $3m lot due in about 8 months time).

But even with 10% of shares bought back, YOUR share of the goodies increases in value.


I know there are those who think that share buy backs are a short term fix to the share price, and do little to improve share holder value over the medium time. I agree with this. However, measures such as buybacks and/or capital returns are necessary in short term for BTV to narrow the value gap between their current market price and their NTA.

Because the longer the price stays where it is, the more likely the wolves will be circling, licking their lips at BTV's unallocated cash and receivables.

An unsolicited takeover, raiding the company, would likely succeed at much lower a price than would happen in a normal market. The predator would then bank the future receivables.

Make no mistake - BTV will be receiving PLENTY of inquiries from other parties. There is going to be a lot of juniors going through the hoop in the next 18 months, and lots of consolidation, where the cashless get together with the cashed up, and vica versa, to survive.

I am sure it will be an interesting time for BTV in the next 6 months.

BTV WILL have its 'dance-card filled' in the not-too-distant future, one way or the other...

disclosure: 2,000,000 shares held directly. And some others : )