What you don't understand is that they announced the buyback before they announced the dilution.
dff, good gracious.. didn't you put this down already for one of the questions for Wed. conf. call? And that comment is WRONG. They didn't announce the buyback before they announced the dilution. They announced the buyback before the dilution was OVER.
I've been offline all day, and now just catching up, but sadly enough, I'm on a phoneline (ALL week), so it took time to get through all the messages.
Why all the negative attitudes today from so many? Was there some change in Eternal Image this weekend? Isn't this still the same company as last week?
EI KNEW they needed the money, and at the time the only way to get the money they needed for tooling, production, etc, was through the 504's. They also knew that they'd MAKE money once they started selling the Vatican, MLB and AKC urns, and that's just to start with. As money was coming in from pre-orders, they started setting aside a percentage so when the time came, they could start buying back the shares that they HAD to put out FOR the money needed TO start up. For a new company, it's not easy trying to get started. You can't just go in a bank and get a loan if you don't have the product to show for it. The 504's were their only option. I don't know if they decided on a percentage per urn, or a set dollar amount per week or month, but what is so difficult to understand?? They were telling us that they had no choice but to dilute at the time, but once it was over, and once money was coming in, they could start buying back and retiring the shares to the treasury. It's really no different than you getting a loan from a bank, and telling them you'll pay them back monthly. They're paying us back by buying back the shares.
Laugh Often! Humor prevents hardening of the attitudes!
