Investor Help (NO Ihub questions)

[IRISHBULL]

Here's my thoughts...

This week, company announces a buyback of a Billion shares....Cool. So far 500M shares have seem to have been bought back as they have been at the bid. So here is the question..... How do you know they bought back 500m shares? Are these shares being bought right out of the public float on in the open market and retired? If so, then I would follow the public float to see if there is a reduction.

Lets look at the volume. Say 500m traded since the announcement. Im sure many investors who bought the "buy back" news were buying stock. Also, I know a market maker and he said that sometimes they need to go to other market makers to get shares to sell to their customers. Those show up on the time and sales and can be printed 2 or 3 times until the actual sale is made so when you see 500m, 100 million or more could be MM transactions. Its hard to figure that out and even harder to know if the company is actually buying the stock in the open market and retiring it unless you keep track of the float through the transfer agent.

Who could or would be willing to sell at 0001 when no one could have bought at that price...... All these penny stocks have one form or another of financing through the use of shares so I would assume the selling is those people and lets not forget the promoters.


Bottom line is companies that are doing very well like some blue chips that have a load of cash buy back stock. These pennies have been using the buy back PR's to sell stock or help the lenders who were paid in stock sell the stock. One has to question themselves as to why a company with no money or profits would buy back stock that they need to issue for cash? Its silly when you think about it. A company trying to grow and make a profit doesn't NOT take what working capital it has to buy back stock.

Just my opinion