Can't really see it as being effective capital management due to the extremely tight held share register.
Buybacks are usually meant to raise the share price by decreasing the number of shares available thereby increasing EPS. Even if they're rolling in unfranked cash they're not going to be able to spend it, who's selling?
Any intervention in such a tightly held register is going to directly raise the share price.
Share price must be the greatest frustration for hsn management.
They've just paid about 10mill(my rough est) in purchase price, debt and restructuring cost etc for an asset in the Peace business that was worth over a 100mill and had 20mill spent on it just a few years ago.
They're now competing in the IBM space. It must be hard when you say you've got all this fantastic stuff, you're a really big player, how much are you worth? 50mill.
Just love to know the target range, how much directors think this company is worth.
Does this mean they have given up on a euro zone purchase, price too high and/or are they generating lots of extra cash?
Going private? must be discussed.
-----
I have a vested interest in promoting hsn
HSN Price at posting:
30.0¢ Sentiment: LT Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)