re: share buy back - bad idea? This company is starting to...

re: share buy back - bad idea? This company is starting to generate real cashflow, as can be seen from thier recent half yearly report. The option exercise will deliver another $9M by end May, giving >$16M in cash. Rather than distribute to shareholders an unfranked dividend, management have opted to do a buy-back, that is, reduce the number of shares on issue, which increased the EPS figure (less shares divded by the profit).

Rather than piss the money up against the wall on an acquisition, management sees significant growth in all thier core markets. While the price may be down today - this is a huge benefit for all those long term holders (like myself).