Firstly I don't consider the 12 months high a real benchmark in this case. There were events that unfolded that were always going to put pressure on the share price. You cannot have an ex CEO with a large number of shares selling not to depress the share price. Even the events surrounding the calling of a shareholders meeting made all of us less likely to load up. Then add to that the well-known failure of Sargon and they almost 20% holding.
You in fact state that you consider it undervalued as do I. Hence why I believe they should be doing small buybacks even at this level as any acquisitions basically cost more if your share price is depressed. Personally I value my shares north of 32c and acquisitions below this cost in my valuations.
In defence of the directors - it seems that there were plenty of corporate action going on during the past 18 months. I suspect that at times they could not buy back the shares because they were in discussions with a number of parties.
However, I do take your point that the company did seem a little shy of buying the shares back for the benefit of all shareholders.
I don't think that you should consider the small volume issue here as factually a reflection of the company. In one hit the company placed 20% of its shares and there were plenty of buyers for more. That's not a small feat given the events surrounding Sargon.
So I think this isn't anywhere near my bottom drawer - in fact, I think the market events may well propel more consolidation and I think InterPrac could be a huge beneficiary of that.
SEQ Price at posting:
26.0¢ Sentiment: None Disclosure: Held
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