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Re: danceswithcharts post# 130247

Thursday, 10/02/2014 12:00:58 PM

Thursday, October 02, 2014 12:00:58 PM

Post# of 148345
Missed that statement regarding buy-back with financing. IMO, buy-back is done primarily when a company is healthy. What better means of 'investing' than the buy-back of healthy shares from a company it trusts and has complete confidence in....themselves.

Immediately upon buying back gobs of their own shares, the pps goes up...and it will "stay up" because the company is healthy and business is in an upswing. The shares bought back reduce the OS but in effect, stay in the AS...a "financial" reserve in case future purchase opportunities emerge or capital needs present themselves.

The timing of a buyback primarily is intended to benefit the company not necessarily its investors. The key to success in a buy-back attack is stability and near assurance that any pps increase as a result will STAY UP!

No chance of that happening at this juncture with PVEC. Companies with the stability level of PVEC do R/S rather than B-B. They will increase their debt and spend all the cash they have presently in order to increase the odds of the company's future success. B-B happens AFTER success.