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Technology Stocks : Equinox Systems (EQNX)

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To: Pirate who wrote (535)6/22/1998 8:23:00 PM
From: HeyRainier   of 765
 
Would people be running around pissed that they drove the price down and bought back cheap stock?

Interesting dilemma.

I myself would consider a treasury purchase of shares to be a positive maneuver on their part. What would be of concern is if management, after selling their holdings, were to immediately purchase them right back at the lower share price.

While this could also be seen as a possible vote of confidence, I think it would be overshadowed by the perception that they just duped their shareholders and flipped the shares for a quick buck. Not exactly the kind of image they need right now.

From these two scenarios, I think there is a way to get the company to buy back shares and still move towards redemption: a treasury purchase rather than a management purchase (at least those who sold) could allow them to walk this fine line.

Just my opinion.

Regards,

Rainier
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