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Technology Stocks : THREE FIVE SYSTEM (TFS) - up from here? -- Ignore unavailable to you. Want to Upgrade?

To: Maurice S. Green who wrote (2321)	8/31/1998 12:42:00 PM
From: dfloydr	Read Replies (1) \| Respond to of 3247

Question for all. TFS is getting some good buys on their stock here. N.O. has tallied some 200,000 shares that appear to have been bought in and today is seemingly adding to that total. What are now the actual effects of all this company buying? Case 1: Are these shares just held in the company's name? In this case EPS stays the same, just the ownership name has changed. In this case, they could be resold at say 12 or 15 for a profit. In this case a hostile buyer would have to reckon with the shares held by the company. Or they could serve as collateral for cash needs in the future. Case2: Are they removed from circulation? In this case EPS goes up as more shares are bought in. In this case liquidity is diminished as cash is used to buy shares. In this case to regain liquidity via the equity route TFS has to go through the underwriting process again. (Bet they wish now they had taken N.O.'s hints about raising money some six months ago!)