Replies to post #6700 on Valcom Inc (fka VLCO)

[Penny Whisperer]

There seems to be differing opinions regarding the buyback announcement.

All I know is that if they announce it before it happens, there will be an immediate run on the stock, whether it has been in up uptrend or not, because traders will want to be in it when the company begins purchasing shares back, knowing that their purchase will drive the price up.

And when the buyback does begin, the float will likely already be locked down and turn over a few times before the buyback is complete. This will have an enormous impact on the pps of the stock, driving it extremely hard and likely several hundred percent higher.

I think this is the effect that Valcom wants to create by announcing it before it is done. They want a higher pps. They want this back in the dollar range. This share buyback sounds strategically calculated to get it closer to doing that in the short term.

So, how would it benefit everyone? Seems obvious that if you know that the company is going to be buying shares, then you'd definitely want to be in play before hand so that you can ride the pps increase all the way up.

Flippers and traders benefit, investors benefit as the share price will likely form new support along the way much higher than current prices.

As far as the company goes, it would seem that they would derive more value at doing the buyback during a dip in the pps, but in reality, the company will have a certain amount of funds available for the buyback. They will buy shares until that amount of money is used, regardless of how many shares are purchased (or, so is my understanding). So, with that in mind, it really doesn't make too much difference what price the shares are, only to say that more shares could be purchased at a lower price than at a higher one, obviously.

But, either way it's good.

just my opinion.