Basic Maths
The share buy back is simple maths. If total company capital is say $100M, and there are 100M shares in total for that company. That is $1 per share. If the company buys back 50M shares from shareholders, that is now a company still worth $100M, but the share price is now worth $2 per share (the capital is the same, but the number of total shares has halved). So, a share buy back will immediately lift the share price,as less shares on the market. Same happens in reverse, allot an additional 50M shares t o the original 100M and the share price will now drop from $1 per share to $0.66c per share. The total company capital is the same but is now spread over 150M shares which equates to $0.66cents/share.
Basic maths..... Easy for the board to increase share price with little or no action.
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