buy-back and nta improvement., page-2

Early1,

Don't forget that the company is spending cash doing the buyback. This decreases the total NTA, (but increases the NTA per share). The exact calculation will depend on the prices the company is able to buy their own shares back at. (All things equal), the NTA will not remain at $51m after the buyback is complete.

Whilst buybacks are not always a licence to print money, they are a good idea when a company is trading well below their NTA. They also reflect management's confidence that the company has the surplus cashflow to use their excess cash in this way.

I personally prefer buybacks to dividends, as the company is adding value per share (for those who wish to hold), and in effect putting a support under the share price for those shareholders who may wish to exit. Everyone wins. They are value accretive per share, as long as the buying is done cheaply.

I am not currently a holder of FSA, and am waiting on the sidelines to see at what prices the company buys back on the market. But with their business model in this macro environment, and FSA's financials, things look very good for FSA and their shareholders.

Good luck all.

Yaq