Should they buy on dips or when it's starting to run?
Ten million dollars can buy 1.33 million shares at $7.50, which would lower the 24.28 million share float to 22.95, a 5.5% decrease in the float.
The same scenario if all shares were bought ay $10.00 reduces the float to 23.28, a 4.1% decrease.
I would like to see them pick and choose their spots with 100,000 share trades, taking advantage of lower prices but most importantly, being able to fuel any run ups we might see. Of course, this is all moot if they do the trade all at once. Anyone know the legalities?
Im not the most experience investor but based on what Ive gone through with other small caps is they let shorts run this down and then buy back in the 6s. When buyback is done we will still be under $8 b/c they will wait til its so low it will only boost back to right about where we are now. Hate to say it as Im long and slightly in red & not optimistic about the short term although Zagg is still a long term buy to me.
I do not think that taking it down will make a lot of people sell though. I mean, weak hands could dump but not 8,000,000 shares worth...... This needs to be investigated for one, management should buy even more shares at this low P/E ratio AND give a dividend!! The dividend would make the (naked) shorts have to pay on any shares not really out there.......Ha! that would be great.