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To: nnillionaire who wrote (37365)2/11/1999 3:27:00 PM
From: marc chatman  Read Replies (1) | Respond to of 95453
 
<<that does not bode well for management expectations for share price appreciation>>

Not necessarily. While FGI's stock may be underpriced, there may be other underpriced assets in the patch which present a "one time only" opportunity. There may also be some desperate sellers out there who don't have FGI's relatively conservative balance sheet and could be forced to liquidate some assets at fire sale prices. Also, I believe FGI borrowed funds for the previous buy back. In light of what has been happening to over-leveraged plays, I think it is best to use caution before repeating that exercise.



To: nnillionaire who wrote (37365)2/11/1999 3:39:00 PM
From: silverstein  Read Replies (2) | Respond to of 95453
 
When a company buys back its own shares, the revenues and profits
per share grow, but the company doesn't. Growth comes from
reinvesting monies in infrastructure that will in turn generate
growth in revenues and profits. Given the opportunity, acquiring
high quality companies well below their replacement infrastructure values is a smart to grow a company.

SDS


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