Why repurchase shares?



A software company someone works for, had problems showing
profitability for several years. Stocks when from 25$ to 0.45$ and
stayed there for 3 years, following the disaster year where they book a
net loss of $50M.

After several iteration of laying off people from not profitable units,
and acquiring/selling new profitable software product, they gradually
made even one or two quarters, then suddently showed a profit of 10%.
Then recently business showed sign of improving again, promissing a new
profitable quarter.

Now the company just issued a repurchase of it own stocks, offering a
15% premium from the current market price.

I was wondering why do companies in general in this situation would do
such a thing. Inside knowledge that the next quarter will show a profit
of 25%, and they dont want to redistrubute this money to the stock
owners, but keep if to get better financing? Create a fake demand for
the stock to get its price artificiallty up?

.



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