I won't even try to go where Portee did, he obviously knows more about the accounting gymnastics than I do. Here is what it boils dow to for me. When a company is not bringing in income and/or paying a dividend, I think buying it's own shares as you suggest is a bit of a gamble. Just for instance, if the economy gets even worse, the POG drops to $400 and nobody wants to risk any money on an exploration co. Should that come about, maybe we see KXL half the price in 2 yrs, the time we need the money to drill. We sell the shares on the open market (where there are few buyers) and they raise less than half the money because the influx of shares drives the price down further. I think KXL hit it perfect with the PP last year. We "sold" at the high. While buying at a low sounds good, lets leave that up to individual investors. The PP was a "loan" by the market to look for Protobaggin's Leprachauns, and I think spending it on anything else signals a change in course.

What you suggest may pay off in spades, but I think the risk/reward for buying at these levels is for the individual shareholder, not the company in general.