That's why I said I normally would not suggest a buy back...unless the market remained blind to the improvements in the company's fundamentals.

YES, if the bottom line grows significantly but the PPS lags then a share buy back does two positive things...it increases shareholder value and signals the opportunity at hand to the market.

And any shares they buy back are essentially off the table..no longer in the float, so to speak.

However, should those "elements" appear and the market takes notice via microcap and retail investment interest then there is no reason to buy back.

Any capital would be better used to further grow the company's business, either by expanding sales opportunities or used for strategic acquisitions.

Dividends for penny stocks only leave you with a hangover. No justification for it unless they get a $500 million settlement and want to give back 10% to the shareholders.

Then it's not a penny stock anymore most likely.