AmNet Mortgage, Inc. Repurchases 500,000 Shares of Its Stock at $8.80 Per Share.SAN DIEGO -- AmNet Mortgage, Inc. (Amex:INV INV abbr. in vitro fertilization ), the parent company of American Mortgage Network (AmNet), a wholesale mortgage bank serving mortgage brokers nationwide, today announced that the Company had purchased 500,000 shares of its stock at $8.80 per share through a privately negotiated transaction with a single entity. The transaction has a value of $4.4 million and is not part of the Company's recently announced stock repurchase plan stock repurchase plan 1. See buyback. 2. See self-tender. . On May 13, 2004, Company announced a stock buyback Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. program, authorizing the repurchase of up to 400,000 shares, or approximately 5% of the common shares outstanding at March 31, 2004. The timing of the repurchases made through this program will depend on market conditions and corporate requirements. The repurchases will be made using the Company's cash resources. John M. Robbins, Chief Executive Officer, stated, "We were presented with a unique business opportunity that had the potential to increase stockholder value. The timing for this particular transaction was perfect because we could utilize a portion of the proceeds of our recently completed mortgage portfolio sale. It is our continuing belief that our stock is undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. . Our 500,000 share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. and our ongoing stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program are especially compelling given that the Company's shares are trading at a substantial discount to book value." About AmNet Mortgage, Inc. AmNet Mortgage, Inc. is the parent company of American Mortgage Network. For more information, please visit www.amnetmortgageinc.com. About American Mortgage Network Headquartered in San Diego, California “San Diego” redirects here. For other uses, see San Diego (disambiguation). San Diego is a coastal Southern California city located in the southwestern corner of the continental United States. As of 2006, the city has a population of 1,256,951. , AmNet is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of AmNet Mortgage, Inc. AmNet originates loans for the national mortgage broker community through its network of branches and business-to-business over the Internet. AmNet has loan production offices in Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Kansas Minnesota, New Jersey, New York, North Carolina, Oregon, Rhode Island, Texas, Utah, Virginia, and Washington. AmNet has a total of $1.4 billion in warehouse borrowing capacity and is approved to do business in 49 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). either by license or exemption. AmNet has 5,000 approved broker customers across the nation. For more information, please visit www.amnetmortgage.com. Forward-Looking Statement Certain matters discussed in this press release may constitute forward-looking statements within the meaning of federal securities laws. Forward-looking statements include statements regarding stock repurchase activity and the potential to increase stockholder value. Actual results and the timing of certain events could differ materially from those projected in or contemplated by these forward-looking statements due to a number of factors, including but not limited to: the level of interest rates generally; economic conditions generally; the size of the national mortgage market; interest rate volatility; the availability of financing for the funding of mortgage loans; the Company's liquidity position; the trading price of the Company's stock and other risk factors outlined in the Company's SEC reports. |
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