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Microcap & Penny Stocks : TASA. Can someone with KNOWLEDGE help!!!! -- Ignore unavailable to you. Want to Upgrade?

To: Ralph Bergmann who wrote (363)	4/15/1998 9:59:00 PM
From: Thomas Kirwin	Read Replies (1) \| Respond to of 601

Buy Back Analysis "TASA Board Authorizes Stock Buy Back in Open Market" IMHO - The stock buy back is a good thing! Q - What is the motivation or reason for the buy back? Generally buy backs are motivated by the fact that management believes the stock is undervalued given market conditions and forward looking projections. These programs are a good indication that the stock price will appreciate over time. Q - Does this represent a significant amount of $ or shares relative to stock buy backs? Just the fact that there is such a program in place is significant. The press release states that $250,000 is available for purchases of TASA stock on the open market. Since I predict that the price of TASA is headed upward it appears as though any such market purchase will be at a higher price than the current level. The actual number of shares bought could actually be less unless there is a significant decline and TASA buys on any downward move. In the event of any sell off TASA's purchases would hopefully offset any run for the doors. Q - Based on 1998 projected net income of 400k it would appear to be quite a large amount? While correct that the $$$ amount is large relative to income, etc. one must remember that there is no completion date specified for the buy back of shares. "The shares will be purchased in the open market at prevailing prices and at times and amounts to be determined by management as market conditions and its capital position warrants." By spreading out the purchases over time the actual expenditure as a percentage of income may be drastically lower. The best case scenario is that TASA spends all the money over the next year and completes the program. However, given the language contained in the press release there is a chance that no shares will ever be purchased unless management actually decides to spend the money. Still, it is a good thing! Regards, Tom