<<4.7-1.2=3.5 looks very close to the number of shares owned by R. Gintel. Hope he was not trashed by the company's wisdom.>>
We did not sell a share, painful and frustrating as the experience has been. In fact, our position today is higher than it has ever been, including today's purchases. You have to look elsewhere to find the sellers.
I do not blame the company for anything, other than succumbing to the pressures of Wall Street to make a projection which had to be changed soon afterwards. Of itself, that is not nearly enough to cause the price decline that took place.
No, I rather think the grief has been caused by unexpected delays in the development of the business, the emergence of newly perceived competitive pressures, a collapse of equity market valuations, and fellow shareholders who chose to sell their stock in recent trading sessions. If everyone else had acted like many of us here, the price would still be at $30. For those who were forced to sell out because of margin calls....that's a taken risk that affects all of us who have to sit through the selling, not just those who had to sell out.
I applaud the company's action in repurchasing it's own stock so aggressively and it's willingness to contine to use excess cash to continue to buy more more. I have felt for a long time that Checkfree's upside potential was limited by the large number of shares issued to buy other companies, and for stock options to employees. I am glad to see management taking advantage of the corporate opportunity to redress the problem and at so favorable a price. The lower the price, the more shares the company can buy back. The more they buy back now, the greater the per share earnings in the future. It also sends a powerful message to long term loyal Checkfree shareholders that Pete Kight and the Board is responsive to the needs of the company's shareholders and is acting to improve the market dynamics of the stock by providing liquidity during this period of market distress, while possibly adding adding significantly to the future value of our investment. It would have been very disturbing to me if they just sat through all this and did nothing to help.
For an uplifting experience and confidence builder, I commend Checkfree's newly available annual report. It makes good reading. I only hope things work out in the years ahead as envisioned. I think it is going to take time and one has to be prepared to be patient, but considering the potential percentage gains from these levels, it seems to me one can easily afford to invest the time.
I am sure there are many other more attractive alternative investment opportunities, but for now, I am staying with the gal I took to the dance. |
