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Author: aptvictoria Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 129  
Subject: Re: TransAct Prints Its Own Numbers Date: 11/19/2005 9:14 PM
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TMFTwitty wrote:
"Since TransAct was first authorized in March to begin repurchasing its shares, it bought back 122,000 shares in Q2 and, as revealed yesterday, 409,000 in total. The 287,000-share difference between those numbers will therefore be subtracted from the number of shares among which TransAct's ultimate Q3 profits will be divided.
... Next quarter, however, shareholders should remember that the reduced share count will inflate profits per share somewhat compared with the second quarter."
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When stocks split, historical prices and price-charts get adjusted. But when stock buybacks occur, no adjustments are made? It seems to me that if third quarter profits-per-share are going to be "inflated", then that is a distortionary event that ought to be remedied just like historical pricing is when a split occurs. The investing public needs to be served up apples-to-apples comparitive data. What would be wrong with adjusting historical EPS when stock buybacks occur??? In terms of a mandatory reporting practice.
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