Again, vaso shows news on yahoo with an early morning time, but did not come out till after 3(last time I checked) at least. Don't know whats up with that, but it is good news. They update buyback and increase by 500,000 dollars.
Short interest will be very interesting tonight.
i had zero knowledge of the increase in the buyback but i suggested that earlier as a possibility (not that i considered it likely).
so - one has to consider the reasons and timing of increasing the buyback at this juncture.
1. one seller is eliminated and they are going after another (last) one
2. they are expecting game changing news and are buying ahead of the outcome (they can do this as a company as it is announced ahead of time whereas an insider could not)
3. the mgmt/insiders believe the shares are still very cheap and consider this a very solid use of cash on hand based on expected return
4. they intend to complete the buyback before quarterly numbers are released and expect a surge in price due to results or expected news which will be announced at that time.
if 2 - this would explain why the insiders/company have not been able to buy open market or provide an open window to do so. it certainly does not prevent the company from increasing their buyback as that benefits all shareholders.
this definitely makes the short position that bocamp referenced even more bizarre. that is a dangerous gamble the MM is playing betting against the company when they have all of the cards. at current rate - that is just shy of another 3MM shares the can absorb. even without news - if new investors start digging and decide to speculate that there has to be good news imminent - the new demand coupled with the buyback could overwhelm the MM and force them to cover quickly. this would provide the "coiled spring" effect and propel the price.
im not going to get excited quite yet but this sure seems like we should be off the bottom and on the way back up.
Any thoughts as to what is motivating mm's to take on such an astronomical short position at 18 cents? An overpriced stock with no upside potential would be understandable, but not an up-and-comer at 18 cents. Hubris is one thing, and informed risk taking is quite another. Is the shorting being done out of desperation? If so, how deep does the hole have to get before the time comes to take a different approach and start climbing out? What am I missing here?
If you look at the numbers, we see a bit of good news; and that is that vaso, more than lkely, took out the entire block of stock seller had. That block cost about 1.1 million. Yet, vaso, even under old buyback cap, had enough cash to purchase almost another million shares at that same price of .165. So, given odd number, and the fact that vaso could have bought more, I see it as one block, one seller gone.
Nice touch to show others we still think our stock is cheap by upping buyback.