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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services
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To: Brad who wrote (2803)2/5/1998 9:50:00 PM
From: Terry Lyon  Read Replies (3) of 27968
 
Brad,

Previously there was talk about possible buyback of shares. This makes sense today while shares are relatively inexpensive and money borrowed to support a buyback would be well spent in the longer run. I am concerned as to what becomes of the shares which would be bought back.

If bought shares are destroyed, it would reduce the net count in circulation probably increasing shareholder value. If they are used for future compensation, they may create some future dilution. If they are used as employee incentive, they may also dilute.

I am not very experienced in share buybacks, but I am curious how it might work FAMH and also how it might affect shareholder value? I'm am not even sure how to pose a question to FAMH in this matter.

Terry
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