Bravada International Ltd (BRAV)

[Jammin1]

I don't get how everyone assumes the buyback will happen at .003.

100m is ok that could work.. It's only 75k a quarter.

If there's any significant buyback, the average price will be at least. .004.

Figure that 25m per quarter would cost 100k. Personally, I'd rather see most of the profit go towards expansion.

I think a small amount of buyback is fine, but doesn't it only help shareholders? I mean, for the company, how does it help to buy and retire, other than to make investors happy and drive up the price? Wouldn't a higher price only help if they plan to reissue shares at a higher price? Wouldn't such dilution, if it happened anytime soon, destroy all the good will and confidence they'd earned?

I could see a big buyback in a mature business which doesn't have anything better to do with extra cash, but for this company, I would think the bulk of the profits should go towards expansion.

My guess is that the buyback will be closer to 5m to 10m shares per quarter.