This is a very wise move on LCAV,s part. My take on this action is to limit the downside pressure on the stock when q4 numbers come out.Sorry to sound like the eternal pessemist, but I think the Q4 numbers may be weak. Using yesterdays closing price the buyback will take 1,455,604 shares off the market, or about 3 days of average trading volume. This is one of those painfull situations we have been in before.The stock has corrected beyond a reasonable price and the near term prospects do not appear to be good. LCAV will be using a large percentage of their cash which in turn will return a far greater percentage in respect to a fixed bank return.This is a very prudent move on managements part,the reasons however have yet to be revealed.~md
Have they actually bought the additional shares? I was under the impression this was just the authorization for them and that the only shares purchased thus far are the ones we already knew about from past 10Qs. If they've already purchased the shares, I agree with you. If not, I believe the purchase will come at lower prices after Q4.