Stratasys (SSYS) Message Board

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Technology Stocks : Stratasys (SSYS)

SSYS 9.840

-0.4%

Nov 5 3:59 PM EST

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To: ML Harper who wrote (133)	7/8/1997 11:53:00 AM
From: Stratajema	of 316

IMHO, Stratasys just shot a second red flare in the air today with their proposed 300,000 share buyback. Small, emerging, high growth companies don't belong buying back their shares as they need to conserve their available cash to fund the future, rapid expansion of their sales/receivables and inventory. Am I to believe that management can't find anything better to do with $4.8 million (300K shares x $16) of the company's cash other than buy back its stock? No company in this stage of growth could be mindless enough to spend nearly 1/2 of their cash to buy back their stock. Evidently they expect the stock price will fall a lot lower this summer or perhaps they are planning a secondary offering later this year when the stock price may be at a higher level. The timing of this share buyback before the release of second quarter numbers seems like a bad omen. The price action today seems to reflect my sentiment. Look for the next price support line at around $10.50. - David P.S. These are my opinions and not advice. Good luck to all.

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