Ruminations - In the about 80 trading days since PTNX announced an approved 1 million share buyback (9 Feb 99), approximately 2.1 million shares have traded (using the SI moving avg daily volume of 25,700). The 1 million share buyback amounts to roughly 15% of the 6.7 million nondiluted shares outstanding at the announcement (about 50% of which supposedly were held by institutions). The stock price on that day was, I think, $13.125 per share. If the stock price had increased 15% from that level, it currently would be trading at about $15.10. Instead, even after pretty good earnings announced in April, it is trading at about $14.75. I have no idea whether the buyback has been completed. According to cnnfn.com, the next quarterly report is due out July 8th. I guess I'll have to wait until then before guessing how much of the recent price rise is due to accumulation and how much to buyback. Of course, buyback has no effect on share price if there is no external demand for the stock. And, of course further, these ruminations are just chuck full of unsupported assumptions about market dynamics. Don't you just love hot weather ramblings? (hahaha)
Regards,
Harry |
