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Microcap & Penny Stocks : INFE ... Infocall another Sleeper -- Ignore unavailable to you. Want to Upgrade?

To: Frederick Langford who wrote (4035)	6/6/1998 5:05:00 PM
From: Major Tom	Read Replies (1) \| Respond to of 10343

I found this on Buy backs on a web page. One thing that I noticed in the article that didn't seem correct to me was it mentions that if a company buys its stock back and the earnings for the company stay the same then the earnings per share go up. Isn't there still the same number of shares but just more in the companies hands? Which would lead me to believe that the earnings per share would be the same. Could someone who knows please tell me for sure one way or the other. Any way does anyone know or have a way to know in the near future if INFE is in fact buying there shares back. Thank you Major Tom Holding INFE long. --------------------Check invest-faq.com for updates------------------ Subject: Stocks - Repurchasing by Companies Last-Revised: 11 Nov 1996 From: bobbose@sover.net Companies may repurchase their own stock on the open market, usually common shares, for many reasons. In theory, the buyback should not be a short term fix to the stock price but a rational use of cash, implying that a company's best investment alternative is to buy back its stock. Normally these purchases are done with free cash flow, but not always. What happens is that if earnings stay constant, the reduced number of shares will result in higher earnings per share, which all else being equal will result, should result, in a higher stock price. But note that there is a difference between announcing a buyback and actually buying back stock. Just the announcement usually helps the stock price, but what really counts is that they actually buy back stock. Just don't be fooled into believing that all "announced share buybacks" are actually implemented. Some are announced just for the short term bounce that usually comes with the announcement. Those types of companies I would avoid as management is out to deceive their shareholders.