That buyback idea won't achieve anything except squander our precious cash reserves. Buybacks generally only work for profit-making enterprises who wish to re-invest directly back into the company with funds that are thrown off from operational profits. We don't fall into that category.
To put some real numbers behind it, a $20m buyback @ (say) 5c buys back 400m shares, which would reduce the total shares issued from 2,643m shares down to 2,243m shares. All other things remaining unchanged BMM's (523m) shareholding would increase to 23.3% (up from current 19.8%) and AF's (473m) shareholding would increase to 21.1% (up from current 17.9%). Apart from my first point, above, and also given that the large rights issue (@5c) only happened 10 minutes ago, that would be a pointless exercise. If anything, if would actually strengthen BMM's position, as it would act to slightly increase the gap between their percentage shareholding compared to AF's. Hardly a suitable defensive move!
Let's just hope that AF isn't willing to bail above 6.8c (his WVAC). I just hope that: a) AF doesn't reconsider his reasons for holding; or b) the two of them don't put their heads together to take POS private and roll it into a JV holding shell.
Meanwhile:
Did anyone else notice who's fingerprints were on the "Against" votes for the failed Resolution 8 (i.e. approval of additional 10% share placement capacity)?
Hint: BMM. They abstained for most of the other Resolutions too, except for ratifying the two new directors. (BMM and Squadron both had to abstain/exclude from Resolutions 6 and 6(a)... and that's where we sample the fingerprints from and conclude that it was BMM behind the Res 8 failure).
I'd say BMM want to keep a leash on the pre-approvals for any more placement capacity over and above the normal 15%. If management needs to tap more than 15% within the next 12 months (unlikely, but you never know), then they'll have to call a special meeting to do obtain approval.
For giggles, I'm going to call a turn/bottom in the int'l NP for (say) 5-7 Dec (give or take a coupla trading days).
PS. MC, did you go to the AGM? Would appreciate any insights you can share.
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Mkt cap ! $16.81M |
Open | High | Low | Value | Volume |
0.4¢ | 0.4¢ | 0.4¢ | $3.474K | 884.0K |
Buyers (Bids)
No. | Vol. | Price($) |
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121 | 96597061 | 0.3¢ |
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Price($) | Vol. | No. |
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0.4¢ | 51477989 | 56 |
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No. | Vol. | Price($) |
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111 | 93529221 | 0.003 |
38 | 66812489 | 0.002 |
16 | 35378697 | 0.001 |
0 | 0 | 0.000 |
0 | 0 | 0.000 |
Price($) | Vol. | No. |
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0.004 | 50650142 | 48 |
0.005 | 28729993 | 19 |
0.006 | 7638997 | 9 |
0.007 | 1668099 | 8 |
0.008 | 1800000 | 1 |
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