Nigel, it is interesting to me that you would pick the share buyback over a dividend. IMO the dividend does a far better job of validating the company and delivering value to shareholders. It will
1) Provide tangible returns for all shareholders through the deemed dividend
2) Attract institutions that only invest, or give preference to, stocks that pay a dividend - resulting in higher valuation and more stable appreciation
3) Validate the cash that the company has and the money they are making, since it is based upon a % of net income
4) Will cost the shorts money, pressuring them to cover and deter them from shorting the stock in the future
As per the buyback, there is no requirement for them to buyback and I feel that they have taken other more important steps to validate the company. I no longer feel that them not buying back any shares will have a material effect on investors' perception of the business.
That said, I would welcome them buying back shares at these prices because they do have a lot of cash on hand and I would like to see them further absorb the impact of the earn out shares and do feel that it is still one heck of a good investment at these prices.
