Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Resource America (REXI) -- Ignore unavailable to you. Want to Upgrade?

To: Candle stick who wrote (59)	8/30/1998 1:07:00 AM
From: Bill Wexler	Read Replies (2) \| Respond to of 220

<<However, given the numerous positive events that have taken place for REXI since its drop from 36 to 13, it would appear to me that the upside holds much more potential, at this point, than the downside.....especially given the 50 million dollar buyback announced late Friday.>> Incorrect. The announcement of the "buyback" probably had short-sellers high-fiving each other. This is a classic maneuver by a desperate company to put up a facade of strength. Note that good companies announce buybacks after spectacular quarters...probably after their stock has already run up (IBM, DELL, etc.) When companies issue press releases after a stock decline either criticizing short-sellers or announcing ambiguous "buybacks", that's a clear signal to cut and run because the stock is going lower. I say ambiguous buyback because the company did not specify they would be buying stock. Mr. Pink thinks they'll buy bonds, and I agree.