Zonagen (zona) - good buy? Message Board

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Biotech / Medical : Zonagen (zona) - good buy?

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To: Linda Kaplan who wrote (2523)	2/25/1998 2:46:00 PM
From: Cosmo Daisey	Read Replies (1) of 7041

Linda, Legimate companies buy back stock to manage the shares outstanding and the float. Each year IBM buys back stock but at the same time their execs are selling their bonus stock. This has the effect of the company buying the stock from the execs. without hurting the stock price and no messy bonuses to explain to the shareholders. Its all right to sell two million dollars worth of bonus stock but holders don't like to see a two million dollar bonus paid. The shares they buy back are then re-issued as next years bonus. Legitimate money laundering. Sometimes companies will announce buybacks when they have excess cash and the insiders sell into the buying for a break even effect. I am very leary of a company that is burning cash, has no profit history, has no products, buying back stock. This is an indication that the management can't think of anything better to do with the money, like research or marketing to increase long term shareholder value. Are the ZONA insiders selling their stock and the company buying at the same time? If they bought shares to boost the price it didn't work. ZONA is unique in a lot of areas and this is just one more piece of the puzzle. C. Daisey

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