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Non-Tech : NO A&Pers OR SHORTERS: REVERSE MERGER GROWTH COMPANIES

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To: BOJO who wrote (1)	10/15/1999 10:41:00 AM
From: micky	of 2

In general, a buy back program means that the company has cash, and wants to tighten up its market, so it buys free trading shares on the open market(which it can use for acquisitions, fees, sell or hold as assets). The company goes on the offer to buy whatever shares are available at that price, and then raises the offer if no one sells. Obviously if no one sells, the bid continues up. The company will buy until the kitty set aside for this is used up.. So if the shares are selling around 5, and the company is buying $5 million worth, they would buy in the neighborhood of 1 million shares this way. Looking at ETFC, with about 3.5 million shares in the float (the rest of the 16.9 million issued being owned by holders named in their form 10) this would mean - if these numbers were applied - that the company would buy back about 1/3 of the float. Well, hope the shorters, if any, are running for the hills... Good investing

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