04-19-2013, 04:38 AM
'davidhmtk' pid='21038' datel Wrote:I believe IOC has a plan to take advantage of the artificially low share price. A $500M debt offering will be underwritten by selldown partners and used to buyback shares. With the selldown extending into 237, there will be plenty of cash for lots of drilling. Might as well take advantage of this investment opportunity graciously provided by the shorts. (The $500m is per WA @ IPAA).
Love the idea and concept but just announcing a share buyback will not be a remedy for the shorts and the low valuation. Many companies announce a buyback but few of them actually buy the shares. This will not scare the shorts into covering. What will is actual buybacks and "retiring" those shares from the float. Do that relentlessly in large quantities and it will be like killing the shorts by slowly sucking the air out of the room.
Use or flush.