share buy back was initiated as SAE believed that their shares were under valued and it was a suitable use of cash at that point in time. Hindsight is off course a wonderful thing but I do thank them for doing it as I still see it as a suitable course of action.
major shareholders are selling down as they themselves are going through a credit crunch and need to free up whatever they have that is liquid.
As such the price is being punished. Cash is being used to increase production in a measured way (more drilling at NSA) and via exploration.
The question really to be asked is should they be doing anythin different from a year ago just because of a houseing crisis / financial meltdown.
My answer would be no. They should do nothing different than try to find oil and practice suitable financial management i.e under certain situations buy back shares.
SAE Price at posting:
22.5¢ Sentiment: LT Buy Disclosure: Held
