"Esmer .Your logic is flawed as about 80% plus of the stock traded is the shorts selling from one hand to the other so your real volume figures is incorrect so once the shorters stop doing that there will be a lot less volume."
Little T, either your 80% figure is just your opinion, or an invention, or you appear to have access to privileged information that mere mortal retail traders do not have access to. Which is it? If it turns out that your "80% plus" figure is fiction, which in my opinion seems highly probable, then you have not identified any flaw in my logic.
Please correct me if I am wrong, but I seem to recall that in earlier posts on these threads, you mentioned that you had recommended to NEU that they commence a share buyback. So it is obvious that it would be an understatement to say that you do not share my opinion that a buyback at the moment would have a high risk of squandering NEU's cash.
Looking back at the daily volumes for the past two years, the general daily volumes of NEU shares traded have not changed significantly. So, you appear to be saying that most stocks traded throughout the last two years must have been shorters selling from one hand to the other. Or are you saying that, since shorting became an issue, 80% plus of previously normal trades must have ceased?
The marketplace provides a balance, albeit an imperfect and continuously changing balance, between those with positive and negative sentiments. Even if it was true that most trades are fake, the risk would remain that a buyback would not alter the balance of market sentiment for NEU, other than temporarily. Any temporary upward pressure on the SP caused by a buyback would reverse as soon as the buyback became exhausted.
I am always willing to modify my opinions based on facts. Please explain how you arrived at a figure of "80% plus". And equally importantly, please explain why you think that a buyback could permanently alter market sentiment about NEU. Some stocks that have buybacks in place have sufficient funds to maintain a buyback for as long as they wish, but NEU is not in that category. I reiterate that NEU's funds are too limited to take the risk that a buyback at the current share price would have any lasting effect on the share price, and consequently it would be prudent to hold the buyback in reserve for possible future use.
I suggest that you get used to the apparent fact that some market players consider that NEU's SP is overvalued. If you have some influence on the management of NEU, as you appear to have, then I suggest that you recommend to them that their messaging might be improved so that the future bright prospects of NEU are made clearer which would tend to reduce any negative sentiments and increase positive sentiments. Without risking $50m.
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