Hannover House Inc (HHSE)

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Spotted this on another site. Anybody hear anything about it.

STOCK BUY BACK PLAN (BLOG)


Stock Buy Back Plan
Good afternoon -- HHSE Managers have been looking into an idea presented by a shareholder that seems to have solid merit. The concept is to begin "buying back" HHSE stock shares (off the open market) and retiring them into treasury, under a formula of "x-percentage" of the Company's earnings each quarter. The merits are based on the mutual goals of raising short-term capital for debt-conversions (as we had recently done), with the longer term goal of minimizing shareholder dilution through equity issuances. Functionally, on a recent quarter (let's use 09/30/2012 for this analysis), earnings of $527,161 might have resulted in these buy-backs (depending upon what percentage of earnings were allocated towards this endeavor/ assumes an average stock purchase price of $.02 / share):

At 5% of Earnings: 1,317,000 shares

At 10% of Earnings: 2,634,000 shares

At 20% of Earnings: 5,268,000 shares

While the Company is always stretching our cash resources for maximum value (and we strive to keep all revenues "working" for the Company, rather than sitting idle), if we agreed to such a buy-back structure, it would be treated as part of our operating costs.

What are your thoughts? We welcome feedback to: [e-mail]