A share‑repurchase announcement almost always generates short‑term buying pressure, especially for a thinly‑traded OTCQB stock like LEAT where the float is relatively small and any credible inflow of cash is noticed quickly by market participants. The board’s authorization of a buy‑back signals management’s confidence that the shares are undervalued, which tends to lift sentiment and can trigger a short‑cover rally. The 65‑point sentiment rating already skews positive, and the news headline will likely generate a modest spike in volume as both existing shareholders and short‑term traders pile in to “ride the news.” In a market that is already fairly liquid (the stock typically trades 100k‑200k shares per day), even a modest buy‑back (e.g., 5‑10 % of the float over the next 3‑6 months) can lift the price a few percent in the first few trading sessions.
From a technical standpoint, LEAT has been hovering near its 20‑day moving average and just broke above a short‑term resistance zone around $0.38–$0.40 on a moderate volume surge. If the buy‑back is executed with market orders or via a tender‑offer, the immediate demand can push the price through that resistance, potentially establishing a new short‑term support at the breakout level. Traders can look for a breakout candle with volume above the 10‑day average as a trigger for a short‑term long (or at least a “buy‑the‑dip”) position, aiming for a 5‑10 % gain in the next 1‑2 weeks. Conversely, if the stock fails to break higher on the first day, the initial spike may be followed by a quick retracement; in that case a tight stop‑loss just below the breakout level (≈ $0.37) would protect against a false breakout. Overall, the buy‑back is likely to provide upward pressure in the short term, especially if the market’s reaction aligns with the modest positive sentiment already attached to the news.