Thus company is so weird. They increased a credit line, and as far as I know they are still unprofitable. They want to re purchase 5 percent of the outstanding shares. At today's prices that would be over a half million dollars. I feel like that money would go to better use hiring a profits and loss specialist. I feel as though they would need to direct purchase from Mr Nixon, who would be selling at a loss with today's price. I would be very surprised why he would do that. Buying open market would drive the stock price up past $20 a share due to lack of volume. We'll see what happens.
Does anyone have any thoughts about the below?
Approval of Stock Purchase Program
The Company's Board of Directors has authorized the Company to purchase up to 5.0% of the current outstanding shares of the Company's common stock from time to time in the open market or through privately negotiated transactions at prevailing market prices, depending on market conditions. The repurchase program has no time limit and may be discontinued at any time, however the Company will use its best efforts to complete the repurchase program by the end of 2019. All shares repurchased, whether through open market or privately negotiated transactions, will be restored to the status of authorized but unissued stock.
Ron Nixon, Executive Chairman of the Board, stated, "The Board fundamentally believes that the Company's stock is undervalued at current prices and the stock repurchase program provides a meaningful way to deliver value to our shareholders."
