EPS most certainly can increase if there are less shares on...

EPS most certainly can increase if there are less shares on issue - that's the whole point. Also the asset backing rises as well if you buy back shares below asset backing and cancel those shares.

One proviso though - they need to at least break even or start making some profits for this to be a good idea.

Agent Cooper's comments about them surviving an IT recession are almost understated, they have survived an IT catastrophe. I can see the need to retain some cash to buy businesses on the cheap (Baltimore's Aust assets was a prime example), but I think the majority of the cash should go on a buy back whilst the shares trades below cash asset backing, and create some shareholder wealth.

What is the cash asset backing? Anybody?