The buyback of up to 20.7 million shares, or about 10% of the company, is set to start in about a week as per the announcement on 8th June. The announcement stated the '..current market price as not reflective of the intrinsic worth of the company'. At that time the price was about 16-17.
The stock is very illiquid with virtually no buy or sell depth, and I'm keen to know what people (holders or non holders) think this will do to the price? I haven't witnessed a buyback of such an illiquid stock, but obviously my hope is that the price will rise. I can't see them getting 20 million at a fair price. Surely though this will push the price up a bit, you could argue that about 30 cents would be fair value (currently trading on a PE of 8ish with 5 to 10 mill cash)?
Am i missing something, or can I expect a bit of a rise?
The directors have been buying a few, including some in the 20's, and now own about 35% of the company.
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