I have never seen a company announce a stock buyback and the price drop. This only shows that the shareholders have no confidence in management. It is quite evident that management is not capable of running this company. I find it pathetic that last quarter RFID sales were 1.9% of revenues. The repurchase of stock is the worst way to invest the money to grow this company.
What is going on with this management: after getting rid of the production and sales heads in Europe, they terminated the CFO (Nicolas Remi)over there too. These guys were doing a great job so far as most if not all of the Asia business was going through SAS. Who's in charge now?
1st-this company is owned approximately 65% by one person Liz who is also the COB. Companies that are tightly held by one person or entity will usually not listen to what the minority shareholders want, just a fact.
2nd-the stock really didn't go down as it traded without the dividend of 18.5¢ on December 1st. In fact it is much higher now than on November 30 when you still could have bought it and also bagged the dividend.
3rd-I would be more concerned to see if they secure an early extension on the rights to use RFID patents from IGT which will expire I believe in 2015. I am sure you are all aware that the highest profit margin is in the sales of RFID chips and not the making of non RFID chips or playing cards,dice,felts,or any other thing they make or contract out.
4th-I wish they were a bit more open that they are as the annual meeting is all but impossible to get to. Even when it is held in Las Vegas it is announced not too long before the actually meeting making people who live out of state a most difficult travel.
Wow. Asked and received. I should have asked for a larger dividend at the same time!!
This is definitely good news. The excess cash isn't earning anything and certainly isn't needed for operations. Let's hope it's not just an empty announcement and they actually execute on the purchase.