Share buy back Question ? -Just for the Smart People
Scout, here is how it works. Just because a company is authorized so many shares does not mean they are all in use. In this case EVFL is authorized up to 100 Billion Shares to sell as needed; however the company according to the last filing on pinksheets.com states the company has 25 billion shares in play right now...O/S or outstanding. The buyback now means there will only...LOL...did I just say "only" :) there will be 15 billion shares available to purchase/sale...trade so forth so on...which helps with what they call serious dilution. Any time a company announces a buyback with that many outstanding shares it is a big deal it means there cutting back on the dilution so technically speaking there are less shares available and the pps should start rising the more they buyback the less amount circulating and that increases value. Now are we to a point where this stock will move I don't think so I think it will take operating facilities producing the cellulosic bio fuels for the 5 stations they are looking to open that will allow them capital to buyback more stocks. It's probably inevitable that they will have to do a R/S of some sort in the future to get this trading around the dollar level and possible a higher tier on the stock market that is another way to reduce the amount of shares and increasing the value of the stock. Hopefully they won't go crazy and piss off us shareholders that have been in for a while patiently waiting for something to happen and do a 10,000 to 1 r/s...a 1 to 1 or 5 to 1 or even 10 to 1 wouldn't be so bad.
I'm not even close to being smart when it comes to all this pinksheets games companies play but I've done a lot of research and self teaching about stocks and that my take. I wouldn't worry to much about the 100 billion authorized a lot of companies have a sh.it load of stocks authorized but its whats in play that actually counts.
Is it too obvious to mention that 25B is June 30, 09 and since then, traded volume per day has increased ten fold? And with their announcement, why not update us on the OS? 10B is still good, in theory and exactly what I was calling for, but as everything else it is just another PLAN of ours.