As GBE drops to a new post-GFC low - 10.0 cents - which means it...

As GBE drops to a new post-GFC low - 10.0 cents - which means it is trading at 25% below its current cash position - I want to present some data.

Here are the 4 days of buyback prior to Mark Sumich selling 4,827,500 shares on and off market:

22nd June VOL: 163,800; WAP: $0.140
26th June VOL: 200,000; WAP: $0.140
27th June VOL: 1,250,000 WAP: $0.140
1st July VOL: 750,000 WAP: $0.140

Note that the buyback is defending/buying at 14 cents, and in large volumes.

Then, on the 4th July, following the announcement about finance, our MD sold 4,827,500 shares on and off the market at 13.5 cents.

Then, the buyback recommenced. Note the volumes and weighted average prices:

11th July: VOL: 150,000; WAP $0.120
12th July: VOL: 150,000; WAP $0.115
15th July: VOL: 200,000; WAP $0.118


Buybacks aim to buy the maximum number of shares back at the lowest price. (Not the other way around as short-term holders who wish to exit would like it). But the aim, like any other buyer, is to buy MORE at cheaper prices, and LESS at higher prices.

So, is this happening? It appears as if the company was buying aggressively at 14 cents, for many days running. Coincidence or not, the two biggest volume days were those immediately prior to our MD selling most of his fully paid shares. THEN, after that, the price was allowed to fall SIGNIFICANTLY by those doing the buyback, and the buyback recommenced with much more subdued buying at lower prices.

Hopefully, there is another explanation. But we have heard nothing from the company about why our MD has dumped so many shares at such a low price. It doesn't take Einstein to work out that the heavy buying of the buyback was beneficial to Mark Sumich, as it supported the share price at 14 cents prior to his large disposal. And then, subsquently, the company has been quite happy to let the price fall and not buy nearly as many shares at even cheaper (and therefore more value accretive) prices.

Anyone have any comments? Because from where I am sitting, there is a VERY bad look about this.

Hopefully, after the next announcement, the buyback continues in a more aggressive fashion, taking as many of these ridiculously cheap shares as they can.

Yaq