PERS.OB $1.61 per share in CASH. $6 million looking for a business.
"the Company has considered various business alternatives
including the possible acquisition of an existing business, but to date has
found possible opportunities unsuitable or excessively priced. The Company is
also considering developing a business itself, believing that start up costs may
be preferable to the premiums required to purchase a going concern. The Company
does not contemplate limiting the scope of its search to any particular
industry. Management has invested substantial time evaluating and considering
numerous proposals for possible acquisition or combination developed by
management or presented by investment professionals, the Company's advisors and
others. During the past four years the Company has limited its activities to
relatively small real estate projects and modest trading and investment
activities. The Company continues to consider acquisitions, business
combinations, or start up proposals, which could be advantageous to
stockholders. No assurance can be given that any such project, acquisition or
combination will be concluded.
The Company intends to continue its investing and trading activities
and as a consequence the future financial results of the Company may be subject
to substantial fluctuations. Mr. Michael, the President of the Company is a
graduate of Harvard Business School (MBA). As part of the Company's investment
activities the Company may buy and sell a variety of equity, debt or derivative
securities including market index options and futures contracts. Such
investments often involve a high degree of risk and must be considered extremely
speculative. Futures contracts are particularly risky since a relatively small
amount of capital controls a large nominal market value thus greatly
exaggerating the exposure to potential losses. During fiscal 2000 the average
nominal value of the Company's exposure to derivatives was not significant.
During fiscal 2000 the Company repurchased a total of 340,000 shares of
its Common Stock at $1.35 per share from Company President John H. Michael at a
total cost of $459,000. The purchases were made at or below the market bid price
and about 15 percent below liquid net asset value per share. The Company may
repurchase additional shares either publicly or privately during the coming
fiscal year, but it has no specific plans to do so. At September 30, 2000, the
Company had a total of 3,740,000 shares outstanding which is net of 1,124,000
Treasury shares.
At September 30, 2000, virtually all Company assets were held in U.S.
Government three (3) month Treasury Bills, Cash or 60 day Prime Commercial
Paper. The Company had no other investment or trading positions. It continues to
be the intention of management to acquire or develop an operating business."
freeedgar.com |
