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Re: Setonian post# 8664

Monday, 05/16/2005 3:12:18 PM

Monday, May 16, 2005 3:12:18 PM

Post# of 53980
Issuing more shares only serves to dilute their current holdings by that amount. That's running in place.

They can get a far bigger bank for their buck by a share buyback......using company funds.

Let me present a scenario again, for you.

Current pps = .025

Cost of a 20 million share buyback...in the neighborhood of $500-$600K.

What happens to the pps?

1)Above buying pressure volume alone must increase it.

2)Forward pps momentum created, as opposed to current stagnant situation

3)Reduction in O/S to about 160 million.....markets like O/S reduction as opposed to the prior dilution here, which everyone believes has contributed to a lower pps. Reduction will have the reverse effect.

Shareholders.....particularly the largest ones, i.e. Cal and Brian....win.








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