Monday, 27 September 2010

IWG Buys Back Shares


International Water-Guard (TSX-V: IWG)
Basic Shares: 39.3 million
Fully Diluted: 46.5 million


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International Water Guard (IWG) is opening up its treasury a bit to buy back up to 5% of its "undervalued " shares, it announced Sept. 27th.
Given that just over 39.3 million shares were outstanding as of Sept. 15th, that will allow the Burnaby-based company to buy back up to 2 million shares over a one-year period.
IWG has no debt.
It has $ 1million in the bank.
And it is pursuing targets through a mergers and acquisition program to expand its business opportunities during a time where it's core business - supplying state-of-the-art water treatment technology to the aircraft industry - remains flat.
Despite the latter issue, the company and others believe IWG share prices don't reflect it's leading technology, its solid management or its future prospects.
In an Aug. 9th report, Fundamental Research analyst, Siddharth Rajeev, concluded that with IWG's working capital of $2.16 million and a market cap roughly equal to that, "IWG continues to be significantly undervalued.”
In the same month that Mr, Rajeev issued his update, IWG shares were trading around $0.06 cents. The analyst said a fair market value would have been five times higher at $0.30 cents.
With today's announcement, share prices were still sitting at $0.06 cents in early trading but volume was spiking.
To read the full news release, please click here.