Replies to post #105420 on NanoViricides Inc. (NNVC)

[thefamilyman]

I disagree that NNVC needs to conserve cash. The primary cash expenditures we have right now are salaries and whatever it takes to bring the new facility on line. I don't see how reducing cash from $42 million to $39 million will have any significant adverse impact on keeping those or any of our other "irons hot."

I do agree with the sentence in bold below and I think a share buyback fulfills that ROI requirement. It supports the share price in several ways.
1) It reduces the number of outstanding shares.
2) It shows the market that the company feels it's stock is a good investment right now.
3) It shows the market that the company has confidence in its Business Plan.
4) It establishes a "floor" price for the stock.
5) Shorts would have less incentive to short and more incentive to cover. Further, knowing that the company is willing to use buybacks to support the share price will make shorts more cautious in the future.

An additional but certainly less important argument is that buybacks are not a tool used by shady management teams who are scamming investors to provide themselves a "lifestyle". Most of us do not believe that is the case. But it is a point that is continually being made by some who continually criticize our company leadership.

The only time stock buybacks are warranted is when there is no other investment that will give a greater ROI. NNVC has many irons in the fire and needs to conserve cash to keep the irons hot. - daBose