HUNT VALLEY, Md.-Tessco Technologies Inc. said it will purchase shares of its common stock pursuant to a previously announced stock buyback program.
“Our current per-share stock price represents approximately 80 percent of our $12.86 book value per share. We believe this share price does not accurately reflect the company’s current value, and therefore, we plan to purchase additional shares of our common stock,” explained Robert Barnhill, chairman, president and chief executive officer of Tessco.
“At present 332,100 shares remain available for purchase under our stock buyback plan announced on April 28, 2003. At current prices, we believe that the purchase of our shares is an excellent use of funds to enhance shareholder value.”
Tessco’s stock plummeted more than 10 percent yesterday after it said it had been informed by T-Mobile USA Inc. that its currently supplied integrated e-commerce-based marketing, sales and supply chain system for T-Mobile USA’s business-to-business, consumer direct and telesales channels will be transitioned to a third-party logistics provider and an “in-house” Web solution in the near future.
After announcing its purchase plan, shares of Tessco rebounded nearly 10 percent to trade at $11.63.
