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.

Technology Stocks : JMAR Technologies(JMAR) -- Ignore unavailable to you. Want to Upgrade?

To: michael b greenberg who wrote (6612)	9/10/1998 5:43:00 PM
From: EL KABONG!!!	Read Replies (1) \| Respond to of 9695

michael, As someone else pointed out earlier, they must think that they can get one heck of a return by investing their capital in themselves rather than in R&D. Remember, the stock buyback doesn't change the number of shares authorized. It merely temporarily reduces the float. When the time comes that JMAR can resell the shares they buy under this program, hopefully they will do so at a tidy "profit". Somebody, somewhere in JMAR, has thought this thing through. If we invest in R&D, we can generate X% return on this money. If we leave it in a bank, we generate X% interest. If we buy bonds, etc... This person or group of people, likely including the CFO, has reached the decision that investing in their own shares is the best use of this $2M. It also should have the immediate impact of a slight rise in the stock price (because of the lower float), and the "beneficial" press they generate from announcing a buyback (probably a bit of sage advice from the new IR/PR folks). And also remember, they have only authorized the buyback, not mandated it, so if the announcement alone is successful in bringing about a halt to the bleeding in the share price, they might meet their presumed goal without having to spend one cent of the $2M. All in all, I'm pleased with the announcement, but I don't think JMAR was the "late day buyer" we've seen, because I don't think that they could legitimately start executing the plan without having previously announced it publicly (press release like we saw today). KJC