The directors now hold in excess of 50% of the company's shares & they continue to buy.
They are making a profit but not paying a dividend & are looking for the company to buy back more of its own shares.
The end result will be there will be very few shares left in the hands of the public & the directors will finish up making an offer for all remaining shares so that they can completely take over the company.
By having a share buyback they are reducing the number of shares that the directors have actually to buy themselves in order to mop up all publicly owned shares.
The action to take by individual investors should be firstly not to sell & possibly to buy more, thus making it more expensive for the directors & also forcing up the final price the directors will have to make before we finally surrender our shares.
MVP Price at posting:
32.0¢ Sentiment: LT Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)