Bebida Beverage Company (BBDA)

[traderjoe1973]

He should have never made promises of stock buyback and audited financials until he was ready and able to implement it.

wait until q4 sounds like more string along tactics to me. with al the growth and expansion this company has been having it is ridiculous for the pps to still be so low.

I'm keeping a few shares in the off chance it does take off like a rocket but getting rid of the bulk of them and putting it onto something more established and reputable.


quote:
Last year, I said we would consider doing a buyback of our stock to clean up our capital structure and to benefit shareholders. However, at this time, does it really make sense for us to do that? Let me explain…

There are two ways we can go with this strategy; one makes sense to me, the other makes less sense at this time. It basically boils down to this:

- Use our own funds through revenues to continue to grow this Company at a rapid pace or,

- Buy back the stock in the marketplace immediately and borrow the money for growth

At this time, if we put a stop on growth and buy back the stock, the stock price will be higher but we will have to do an equity-based financing to get the money to continue our growth. If at all possible, I think most would agree that avoiding dilution is the way to go. What do you think we should do?

However, this does not mean that we will not buy back stock; we are going to buy back stock but we are going to do so with a discretionary buyback. Throughout this year, rather than have an organized and well publicized buyback, we will buy back the stock periodically. It is in our best interest and in our shareholder’s best interest to buy back the stock over time to reduce the number of shares available in the marketplace. This feeds into our strategy which is outlined in the section below, Audit/Senior Exchange.