Hi previous some previous posters in this thread,Given the...

Hi previous some previous posters in this thread,

Given the relatively poor buy/sell depth, the company can't not simply buy back all the shares at 50c without substantially raising the SP (eg. the last lot investors who participated in the 60c capital raising may not be readily to sell back for 50c).

Then the regulation comes to play. I have read some where that the buy back's price must be within 5% VWAP of a certain period, otherwise it will open up to SP manipulation. So the buy back must be stretched over a long period for the SP to go up (ie. the company can't keep increase the buying SP in a matter of few days as the inert VWAP won't allow it). In AZZ case, the period could be up to 12 months, for just 10% number of shares.

Furthermore, if the company wants to buy back as many as it could (ie. not limited to 10%), it has to have fund. But we all know that if this $156m is not invested within 90 days, we will be hit with an US capital gain tax bill (which would push the real cash backing to only +-40c I guess). Not a viable solution.

Remember James also holds more than 9mil of shares (and his father too). He has much more incentive to push up the SP.

Another thing, some posters mentioned about guided $1 figure by this December. In the sale announcement, it states that AZZ is comitted to realise the SP at $1 in December 2011.