meaning of buy-back?, page-2

I would agree to a certain extent... buy back does not precipitate any ST gains for a company like ZGL. Buy backs can be positive but currently it is given no attention by the wider market so no one will really notice it.

It is also a defensive play against any possible take-overs. And TO would be great for a short to mid term holder - with a steady cash flow, asian exposure, etc, Zicom could have been a great potential tack on for a larger (US/Europe and now Chinese) manufacturing business.

Remember the management are big SHolders and LT they could do extremely well off good SP growth - so I do not think that they will be happy if it languishes around the 20cent mark for ever.

I bought ZGL because the alignment between the senior management and long term company objectives, its sensible strategy and it's low P/E. This is more of a company that a Buffet-type investor would love. Conservatively run balance book, solid business and currently under the radar. You won't loose your shirt and still there is a lot of upside.

I think that the buy back is a "slow and steady wins the race" play. SP is more about supply and demand more than anything else and down the track the lack of liquidity could mean that the SP appreciates dramatically.

Also remember that there are two things to do with excess/under-performing cash to improve SP. Acquisitions and Buy Backs. If good management do not see any other good acquisitions around they will instigate a buy back as a simple way to add value to the SP. They made their acquisitions and are now embarking on option 2.

BTW - I talked to a doctor friend of mine and her opinion was that the med-bot product was that it could be very lucrative, particularly because it serves an ageing population which is set to boom in the next 20 years (prostates - the old man's acne she said). She said that introducing a device with huge efficiency gains in this area could go gang-busters world-wide. And med products are often supplied to state funded medical programs - procurement decisions aren't so short term in this environment, they don't argue too much on price and in economic down-turns medical sales hold steady and can end up out performing other sectors. This, other research and synergies with their existing expertise says to me "smart move".

These guys are running the business in a classic "business 101" way which year-on-year can end up providing better returns than flash in the pans.

Also remember the old adage with a family concerns (c/w the Packer dynasty) -

The first generation establishes it, the second expands it beyond your wildest dreams and the third squanders the lot.

I think we are only beginning to start on the second generation - so hop on board.