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Buyback plan brings bump in stock priceBy LOUIS HAU, Times Staff Writer© St. Petersburg Times published March 17, 2003 Share buybacks -- or at least announcing them -- are a commonly used tactic of publicly traded companies to boost sagging stock prices. So it wasn't a surprise when Z-Tel Technologies Inc. said last week that its board had authorized the repurchase of up to 1-million shares of the Tampa phone company's hard-hit common stock during the next 12 months. Z-Tel faces delisting from the Nasdaq SmallCap Market unless it gets its market capitalization back above the minimum required $35-million and keeps it there for at least 10 consecutive trading days. Because Z-Tel happens to have about 35-million common shares outstanding, that means the company is keen on keeping its stock price above $1. So far, the stock repurchase announcement seems to be working. Z-Tel's stock, which closed under $1 from Dec. 18 through Feb. 19, has stayed above a buck since word of the buyback on March 10. The stock closed Friday unchanged at $1.23. Z-Tel investor relations director Sarah Bialk said meeting the Nasdaq listing requirement was "certainly a factor" in the company's buyback plan but also called it "a wise move for our investors and our business."
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From the Times Business report
From the AP
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