Originally Posted by Carl Spackler

Your analysis is spot on except for the reasoning. It has nothing to do with goodwill. Everyone knows there's almost no such thing as long term investors anymore. Institutionals and hedge funds are very short term oriented. This buy back is NOTHING MORE than management using internally generated cash to buy stock as needed to ensure their stock options can be exercised at a profit after the lock-up date. It's a pure personal enrichment play.



If the health of the company was their main focus, they would use these funds as you've suggested above.



Carl