‘The Board of Directors of PowerFilm approved the share repurchase based on the view of the management of the Company that the shares of the Company are undervalued.’A move that was accretive to NAV per share. In fact, since I contacted the company asking (amongst other things) about share buybacks, they've restarted them:
PowerFilm, Inc. acquired 245,000 common shares in the Company at an average share price of US$.09 per share. Following this acquisition, these shares are being held in Treasury. The PowerFilm, Inc. Board of Directors approved the share repurchase based on the view of the management of the Company that the current trading prices of the shares of the Company (on the LSE AIM) were substantially below the inherent value of such shares.The amounts spent are small but to be fair to the company I can confirm, from experience, that buying stock in any significant quantity for this company is pretty hard. It's more the shareholder value orientation message I value.
Ok. So we bought a stock without a clue as to its future and got lucky. That’s one way of looking at it. But we prefer another. When you buy with a big enough margin of safety, you don’t need to predict the future.