Tjunky, or others: If SFOR does eventually get
Post# of 82689
(Total Views: 391)
Posted On: 12/03/2018 1:44:06 PM
Tjunky, or others:
If SFOR does eventually get enough cash in the treasury to buy back shares, and if it uses the usual Open Market approach, after getting the Board's approval it would (if I am correct) need to
1. first make a public announcement stating the conditions of the buy-back; such as price structure (duration of the buy-back, such as some number of months or open-ended), number of shares to be bought back if there is a limit, or other conditions.
2. comply with SEC rules (e.g., not more than 25% of daily volume to be purchased per day, and other rules that amount to keeping the buy-back within the open market trading range). Block trades may get an exception to the 25% limit on volume in a day.
3. avoid starting a buy-back during a period when the Board Members or other Insiders are aware of pending developments of major significance for the share price. That is, the SEC would frown on a buy-back that was took effect before some anticipate court case settlements or pending major revenue sources. [the concern is that if shares were bought back prior to major news, it amounts to insider trading by the Board itself at the expense of those who sold their shares]
Note that condition 3 above might make it difficult to start a buy-back for SFOR because (according to the great DD on this site), a number of major revenue-relevant developments including law suit settlements are likely in the works.
I'm no expert on these matters, and I welcome correction by anyone in the know. And in many stocks I have followed, the buy-back is actually introduced at an annual meeting in advance of its beginning. I don't think that is required, however.
Erie
If SFOR does eventually get enough cash in the treasury to buy back shares, and if it uses the usual Open Market approach, after getting the Board's approval it would (if I am correct) need to
1. first make a public announcement stating the conditions of the buy-back; such as price structure (duration of the buy-back, such as some number of months or open-ended), number of shares to be bought back if there is a limit, or other conditions.
2. comply with SEC rules (e.g., not more than 25% of daily volume to be purchased per day, and other rules that amount to keeping the buy-back within the open market trading range). Block trades may get an exception to the 25% limit on volume in a day.
3. avoid starting a buy-back during a period when the Board Members or other Insiders are aware of pending developments of major significance for the share price. That is, the SEC would frown on a buy-back that was took effect before some anticipate court case settlements or pending major revenue sources. [the concern is that if shares were bought back prior to major news, it amounts to insider trading by the Board itself at the expense of those who sold their shares]
Note that condition 3 above might make it difficult to start a buy-back for SFOR because (according to the great DD on this site), a number of major revenue-relevant developments including law suit settlements are likely in the works.
I'm no expert on these matters, and I welcome correction by anyone in the know. And in many stocks I have followed, the buy-back is actually introduced at an annual meeting in advance of its beginning. I don't think that is required, however.
Erie
(3)
(0)