this guy is buying more shares back.., page-44

cnumbers, numbers,

Usually a buyback is done by companies that have hoodles of cash from revenues, or from the selling of some assets which are considered to be outside the scope of the company needs, and that are going to be sitting there, UNUSED.

There are usually two things that they will do with those UNUSED FUNDS.

1) Return some to the shareholders as a special dividends to reward them of their long term loyalty, or

2) With that in mind, if the first option is not chosen, they will then do the buybacks in order to reduce the volume of issued shares in the market, thus offering the remaining investors the opportunity to share in even bigger profits. (Less shares on issue, higher dividends for the remaining shareholders).

In our instance, I think that it has only being done in order to put a floor in the share price for one reason.

We know full well that CDU has to raise some funds in the immediate future. So if we keep the buyback up, we will reduce the amount of shares on issue and supporting an inflated share price.

The point that one has to consider though, is that the market and possible future investors alike, IMHO aren't stupid, and they will just not look at the current sp at the time of the CR. They know full well that the sp has been suppported by the company, and not from it's fundamentals, but because of a buyback.

I hope this will help clarifying the way I see things. And believe me, I haven't started investing in the sharemarket a few days ago.

Buddy