Don’t hold your breath
ELB Group is buying back 9.9% of its shares at current market prices and will cancel the shares after the purchase, reducing the number of shares in issue by almost 10%. This means if you hold ELB shares your stake in the company increases by a similar amount. It’s a good deal as the ELB has a pile of cash that is equal to around 1 000c a share, so by buying the shares at 1 737c it’s effectively paying just over 700c per share. Now, you could also buy these shares at an effective 700c in the market, but ELB Group is in a very tough sector of the economy. While I am watching the stock, I expect it to be a long wait before this company starts pumping profits again and becomes a potential investment.