Suppose I own shares in a public company. Suppose management has started a long-term open-market share buyback program using idle cash generated purely from free cash flow. Before the open-market share buyback program, I had considered selling the shares to slightly increase my cash holdings, but seeing the share-buyback, I became hesitant to sell. My reasoning: if the company is buying back shares, it means that the company believes in itself, and believes that buying back shares at the current market price is a good deal. If it is a good deal to the company, why should I sell to it?
What is wrong with my reasoning?