The previous buyback was a stuff up as CDU believed there own story. I was extremely critical of them then. Usually buy backs occur when the management have run out of ideas what to do with spare cash, or have options ecpiring and need to be in the money.
Anyhooo...that was then. ZZeddzz try for once to be a less plodding and a bit more imaginative...and flexible in your thinking.
The money is no good ditting around as cash..it has to be somewhere. The margin getwen interest and inflation is hopeless proposition, especially if inflation kicks off. You must agree that this would not be happening if PW hadn't already agreed, given they will occupy a seat and have generally been fairly straight so far. Sure, they got something out of it..ever hear of win-win...so whatever terms are in the lebding agreement can't be too far out of the market.
What it means is that OW aren't about to let CDU fall over, have agreed that supporting the price is a good idea and when they start to buy themselves it will drive the market price up, and probably CDU will be selling at $3.80 while OW are keeping a solid floor under the price in their own interest.
SP manipulation..damn straight.
CDU Price at posting:
$3.13 Sentiment: Hold Disclosure: Held
