American Green Inc (ERBB)

[flydoc]

Stock repurchases ("buybacks") CAN be a good idea too.

If a company has enough cash/profits, they may want to distribute income to stockholders by buying back some of their outstanding shares (rather than paying a cash dividend -- NOT that SunnComm would EVER consider this). There ARE some advantages to stockholders:

1. Investors would think that management feels their stock in undervalued.
2. Removing a significant number of outstanding shares from the market (and thus making them "treasury" shares) would presumedly cause the share price to rise (assuming that the SP is tied to earnings, like it usually is in a real company). That is, if a stock has a P/E ratio of 25 BEFORE a stock repurchase, and it KEEPS a P/E ratio of 25 AFTER a stock repurchase, then the price PER SHARE would increase by a percentage amount similar to the percentage of the stock that was repurchased.
3. Another use of stock repurchases is as part of a plan to produce significant changes in a company's capital structure.

NOTE: I don't have any idea whether any of these are the reasons that SunnComm may or may not try to do a stock buyback. Of utmost importance to remember is the fact that they would have to have money to do this.