Buy back could be a double edged sword depending on how many shares and how quick the company wish to do so. To buy at lower prices means the company pays less for the same number of shares so there's incentive to push the price down. On the other hand, buying, specially of large volumes, has the potential to push the price up. So UWL will hopefully manage this tricky situation without hurting the price. UWL is a well run company and a great take over target by larger communication firms or even trust funds if it's viewed good value with likely future price hikes. Buy back could also be a defensive strategy to either shield against forced take over ( register doesn't show any one single share holder being able to do this at the moment) or better bargaining power if that eventuates. Past experience shows UWL management have always managed to find value adding acquisitions and I don't see why they cannot do it again if they are cashed up. May be they see better value for their money at home.
UWL Price at posting:
$4.19 Sentiment: Buy Disclosure: Held
