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.

Microcap & Penny Stocks : TSIS: WHAT IS GOING ON? -- Ignore unavailable to you. Want to Upgrade?

To: gregor who wrote (4913)	12/24/1998 8:01:00 PM
From: Tobasco	Read Replies (1) \| Respond to of 6931

This was not really a buy back program. A true buy back would keep the shares in the Treasury, thus lowering the outstanding shares and therefore increasing the value of the stock. This was an attempt to support the market price of the stock. As we all know, the Company is not cash rich so they couldn't retire the stock to the Treasury. Don said that the buy back created "debits" (loans) in the accounts that had to be covered. Thus the Company sold more (larger quantity than purchased) of stock to raise money to cover the debits, thus the dilution of the outstanding shares to the 30m level. The use of 5 accounts isn't suprising as the SEC monitors abnormal volume, plus the manager(s) of the individual office(s) of the brokerage house would become uneasy at such volume and debit balances. Remember, these guys (brokers) don't loan without colatteral. Therefore someone, five, probably used (put up) their personal accounts for the colatteral to buy the TSIS stock and it wasn't their debit to cover or hold so they were probably hollering to get it covered. Think about these fives guys trying to reconcile their individual accounts with their trades and TSIS trades, and then have to reconcile them with the IRS at tax time. Not what I would want to do. This fiasco probably speaks for itself as to whay Scott is gone.