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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services
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To: John Maddison who wrote (8086)3/26/1998 3:27:00 PM
From: HRGuy  Read Replies (1) of 27968
 
John

My experience is that a Company with a buyback plan will not retire the shares but include them as Treasury shares, thus eliminating them from the EPS calculation.

In the High Tech arena these shares are often strictly reserved for issuance of options and/or employee stock purchase plans. Shareholders, generally, like this arrangement because it allows the Company to incentivize their workforce without creating additional dilution.

My guess is that these shares will eventually resurface in the float but it will be slow process of reintroduction.

CJ
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