Replies to post #108261 on APT MotoVox Group Inc. (MTVX)

[Sooah]

I am going to point out the flaw in this logic and use MTVX's actual financials to explain.

MTVX as of the last 10Q had the following EQUITY

Series E - $222
Series C - $197
Series B - 5 whopping dollars
Common Stock - $45,847

Add them and you get $46,000 and change, right?

A share buyback of 4B shares at 0.0001 costs $400,000 as you have pointed out. Shares repurchased and returned to treasury must be stated as Contra Equity which effectively reduces a firm's equity.

Hence, a share buyback of your example would WIPE OUT the already ridiculously, low equity of ~$46K and actually put equity in the negative territory. It really is a dumb way to spend cash MTVX doesn't have.

You may disagree but I am not wrong.