The funny thing about on-market buybacks is they create mixed feelings about what I want to occur - a bit like tipping against your own footy team.
On the one hand, shareholders naturally want to see their company's share price rise. That is why we are all here. But with a buyback, our shares increase in value the cheaper the company can buyback shares.
So one the one hand you want to ask the sellers, "Are you guys NUTS? Why would you be in a hurry to sell on the first day of the buyback when a little patience will mean the company will have to buyback your shares at a higher price?" But, then the value part of the buyback reminds you that we WANT people selling cheaply as it increases the fundamental value of holders' shares. So (facetiously), "Go right ahead sellers, dump this dog of a stock, and the company can buyback your shares for nothing!"
Whatever people decide to do, at the minimum we will see modest gains in the next few months. But I would have thought any sensible holder would hold out for more than 14.5 cents, even if they want to exit.
Yaq
GBE Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
