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Strategies & Market Trends : Low Price/Cash Ratio Value Stocks

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To: stock leader who wrote (334)	2/7/2000 12:01:00 PM
From: Q.	Read Replies (1) of 1931

Telesoft (TSFT) is a low price-cash ratio stock that has announced a huge share buyback, using a dutch-auction tender offer. The offer is to buy shares back in the range 7 - 7.50 on March 6. It's over half the shares out that they will buy back. The stock was trading a little above 4, with $3.61 per share cash and no debt. And it is a profitable company. That's why I originally bought the stock. Now that they announced the tender offer, the stock is trading at 6 1/8. Unless the offer becomes over-subscribed, you are assured of receiving at least $7 per share on March 6 if you buy anytime before then. Dutch auctions are pretty rare. The only other one I was involved in was slightly over-subscribed, but that was okay because the stock price held up after the auction date. This offer is for a larger percentage of shares outstanding than the previous one I experienced. While it is possible that this one too could be oversubscribed, it is impossible for it to be hugely oversubscribed: They will buy back 62% of shares outstanding. biz.yahoo.com

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