ePlus Inc. Message Board
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ePlus to repurchase 3,000,000 shares
This is an interesting announcement. What is the purpose of buying back 1/3 of outstanding shares. Is it true that ePlus only has 9.4 million shares of common stock outstanding?
What the heck does this mean? (or am I reading too much into it). Sounds like great news at face value.
Flash
ePlus inc (NasdaqNM:PLUS - News) announced today that its board of directors has authorized the repurchase from time to time of up to 3,000,000 shares of its outstanding common stock to a cumulative maximum of $7,500,000 over a period ending no later than September 30, 2004. The purchases may be made in the open market or in privately negotiated transactions, subject to availability, at prices deemed appropriate by management. The repurchased shares will have the status of treasury shares and may be used, when needed, for general corporate purposes. ePlus had approximately 9.4 million shares of common stock outstanding as of Tuesday, September 30, 2003.-
$7,500,000 divided by $15.59 per share represents a buy back of 481,078 shares or 5.1% of the outstanding stock. If we add 5.1% to the stock value we would open at $16.38 today.
It would appear that the company expects the stock to retreat from here to get more that 481,078 shares?
What's the story?- 1 Reply to plus_fan
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That sounds fish to me too.
I am wondering whether they have bad earning this quater.
But, normally company announce repurchase prgram after the earning report.
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I will buy more, too.
From time to time.- 2 Replies to jinandju
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They bought back 500K+ shares on Dec. 02.
http://www.eplus.com/news/index_2002.shtml
This should help share prices. I will hold for 30. -
PLUS should see 20+ once they start the buying..stay tuned its going to get exciting!
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