Let me throw out another idea about stock buybacks, combining two Conspiracy theories... There's been talk on this board about Sugar's probably desire to take SFI private eventually... Reducing outstanding shares reduces the overall cost of a buy back. Also, SFI announced in the 10k that they were granting market-based restricted stock units to executives and other officers in an amount probably exceeding 10% of the then outstanding shares (see below). Buying back shares in the open market can keep the total amount of shares outstanding unaltered while the transfer of ownership from the public to the officers is ongoing... How's that for conspiracy theory???
"On December 22, 2008, the Company granted a total of 10,164,000 market-based restricted stock units ("Units") to executives and other officers of the Company, subject to approval by shareholders at the Company's May 2009 annual meeting. The Units will vest 12 months after the achievement of specified price targets for the Company's Common Stock, as follows: (a) if, during the first year following the grant date, the average trading price of Company's Common Stock is equal to or greater than $4.00 for 20 consecutive trading days, the Units will vest 12 months after this $4.00 price target is achieved; (b) if the Units do not vest in the first year, the price target for the Company's Common Stock will increase to $7.00 in the second year and the Units will vest 12 months after this $7.00 price target is achieved; and (c) if the Units do not vest in the second year, the price target for Company's Common Stock will increase to $10.00."