EuroWeb Stock Buyback Amounts to Next-to-Nothing (EWEB)

Jun.23.06 | About: Euroweb International (EWEB)

Here's an update on EuroWeb -- a company we have written about in the past. Those wacky Central European media moguls-turned IT consultants-turned real estate flippers at EuroWeb International Corp. (EWEB) did announce a stock buyback after all, but it's a pretty paltry one. 700,000 shares at today's prices amounts to less than $2 million, or about a fifth of what the company has set aside for flipping Hungarian real estate.

I don't have an intraday chart to post at the moment but one thing I noted with this stock is that the stock sold down on larger than average volume before the real estate deal was announced and traded up on larger than average volume before the buyback was announced. Someone is getting the news in advance. Somebody please fax a copy of Reg FD to our friends in Budapest.

I have not sold my position yet, but still intend to exit at an appropriate point.

EWEB 1-yr chart:

EWEB 1-yr

DISCLOSURE: I am long EWEB. Not a recommendation to buy or sell any security.