buyback - sending a message early, page-20

beretta,

I think there are merits of either share buy back or dividends payments. CFE is an example of the recent paid dividend and SP fell by more than the dividend amount. other factors were also in play then ie. RSPT. We can only speculate if without the RSPT, would the share price be where it is now much earlier. also the Delong holdings factor.

Share buyback will increase the controlling % of existing large shareholders but we won't get the 'dividend' in our hands. As GEO commented, this form tactic is good when the valuation is not at the stretch end and clearly CFE cash backing will suggest that most of the assets have no value to the market. This type of valuation tells me and I am sure to the CFE board that the shares are very 'cheap' so any further divi payment will shrink the market cap short term. In TS presentation, clearly predatory moves to take over the company were I suspect the reason for the decision to buy back shares. African minerals together with personal director holdings are less than 50%, dunno the real figures, so is vulnerable to take over in theory. As some have mentioned the large holders % have gone up to offer a defense to take over. What I can't understand is why the Chinese are not mounting a take over at these silly prices? I'll leave it for the better informed to answer that question.

I had considered sell my holding not large by any standard but the valuation is just not compelling. I personally think that the buy back is the better option and has to be carried out fully as announced. WOW is an example.

Once this is done, I'll have to sit tight and wait for that Marampa sale which is after all what attracted me in the first place.

Cheers and have a good weekend. Remember I am biased.