i am told that there has been legal reasons as to why the buying back has not begun until now. however AMU has now commenced their bb and will continue to do so over the next 10 months.
i do know what is meant by "legal reasons" ??
while theoretically the complete buyback of 100 m. shs. would mean an increase in value /shr. of 55% i do not anticipate a full 100m shr. buyback.
reason - QE3 now occuring in the US. should continue to significantly devalue the $US against the $A leaving insufficient $US cash when converted to $A for for the purchase of the full 100m. (AMU are currently holding $4m. in $A)
the other thing to factor in is that the ongoing devaluation of the $US will also reduce the value of the company and its earnings when expressed in $A
AMU Price at posting:
21.5¢ Sentiment: ST Buy Disclosure: Not Held
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