Ann: CLINUVEL renews share buy-back program, page-8

My view of the thinking behind such a strategy has always been one of “since we can, we might as well”. It doesn’t really hurt to say you have money set aside for a buyback, it indicates to the market that the company views itself as most likely fully funded to achieve its growth objectives (which should really be obvious to anyone after even just a quick glance at the financials), and ready to engage in on market purchases to support the price, if they deem such an action valuable. It may also make some think twice before betting against the company (though history shows this is unlikely), and can perhaps help investors sleep a bit better at night. It also gives them an easier answer at investor events when the inevitable question arises: “why aren’t you buying back more shares.” The answer to them is probably a simple one, in that they see too many opportunities worth investing in. This is often backed by their inside information, which unfortunately can’t be shared. As such, that answer is often unsatisfactory to some shareholders eager for fast returns. So now this gives them a better answer “we have cash set aside and will continue to assess market conditions”