The director share compensation for 2007 is based on the average price of the stock during the month of January, 2007 (.13).
I don't think management values this stock at anything higher than what the market does right now. I think this R/S move is a desperate attempt to pay down most or all of the outstanding Cornell debt. 300-1 brings the total number of shares down to 2 or 3 million, priced somewhere around 3 - 10 cents. The very next step will be to issue 10 - 20 million more shares (and then another 20 million and another and ...) and then try to sell them off at those prices and hope they make enough to clear the debt.
There are of course two problems with this plan:
1) As soon as they start selling shares, the price will drop and the waiting hordes of short sellers will gleefully pile on and drive the price right back down to 0.0001 in next to no time. I doubt they will make even a couple of hundred thousand before we are right back to current prices.
2) This plan, of course, pretty much completely ignores the interests of current shareholders. There is no doubt that it will be carried out with the full knowledge that prices will plummet. The goal will be to pay the debt off before it hits absolute bottom. The plan will culminate with another massive R/S sometime several months or a year down the road - ie. the company may survive, but we will all pretty much get shafted (no surprise there).
But then, most of you probably already know this because you've gone through it before. Nice.
Oh, and thanks chunga - if I thought I could get enough proxy votes, I would give it a try, but I don't know how many people would actually go for it.
jt
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