The company has number of key assets which in my view is surplus to their needs - if they decide to sell (which may already be a case) there are only a few options - as the company is fairly cashed up with little debt.
1) another buyback 2) special dividends 3) or both
What they announce next will IMHO determine what the boards intention is on the broader question if they intend to go private or not.
The next round of share buyback most likely be the weighted average in the mid to high $1.70s as the market has well and truly passed the previous price target of $1.50-$1.60 & it would be unlikely that any institutions ( which collectively holding about 20-25% of the shares) would part with their holdings for anything less knowing these facts.
So if SDG announces another buyback we can be reasonably sure they intend to take it private not in too distant future, forcing the SP up in any event, alternatively if they announce a special dividend we can be certain that it will put a special premium on ordinary shares rocketing it up sharply.
Either way its a win win for shareholders.
I was going to sell at $1.78 or higher but I am now going to be sitting tight on my shares.
As always DYOR
SDG Price at posting:
$1.76 Sentiment: Hold Disclosure: Held
