ATLANTA, Dec. 5, 2012 /PRNewswire/ -- Light Media (OTC Markets: LGMH), Inspirational Media Specialist, announced today that it has adopted a program to repurchase up to 5% of its issued and outstanding shares, or up to 2,250,000 common shares (hereinafter referred to as "LGMH Stock Repurchase Program"). LGMH Stock Repurchase Program permits common shares to be purchased in open market or private transactions, through block trades, and/or pursuant to any stock trading plan.
LGMH Stock Repurchases would be discretionary and at prices the company considers to be attractive and in both the best interests of Light Media and its stockholders, subject to availability of stock, general market conditions, trading prices, alternative uses for capital, etc. LGMH Stock Repurchase Program may be suspended, terminated or modified at anytime for any reason, including but not limited to market conditions, the cost of repurchasing shares, and the availability of alternative investment opportunities. These factors may also affect the timing and amount of share repurchases. LGMH Stock Repurchase Program does not obligate the company to purchase any particular number of shares, and there is no guarantee as to the exact number of shares to be repurchased. Any and all share repurchases which may be made from time to time by Light Media would be noted in reports – beginning with the 4th quarterly period ending on 12/31/2012.
"Nasdaq-listed Salem Communications CEO's March 8, 2012 earlier publicly-trumpeted dividend strategic announcement was intriguing and inspirational. Light Media, as the 2nd only inspirational media asset/platform-centric, publicly-traded media company in the United States, (the other inspirational media conglomerate being Salem Communications), believes that its LGMH Stock Repurchase Program may also serve as an excellent way to increase market awareness of Light Media (core assets, market, opportunities, etc.), while simultaneously positively positioning for the future. Light Media remains steadily and strategically focused as the Inspirational Media Specialist; and there is more news to come," said Danny Wilson, CEO, Light Media.
The following news article excerpts below are shared For Fair Use Exception Discussion and Commentary Purposes Only: In an October 17, 2012 financial commentary by Morningstar Research (Alex Bryan – Seeking Alpha) entitled "Dividends or Share Buybacks? A Taxing Dilemma" Key excerpts from Mr. Bryan's timely and insightful article are as follows:
- "A firm that continues to increase its dividends will be worth less on an after-tax basis than it would be if it had retained the cash or used it to repurchase shares. Even if some companies do not alter their payout behavior to maximize after-tax value, investors looking for cash distributions may be better served by firms with healthy share-repurchase programs. However, it may be worthwhile to give a stronger weight to share buybacks to take advantage of their superior tax efficiency. Most important, in contrast to a dividend where all shareholders get hit with taxes, in a share-buyback program, only those investors who sell their shares back to the issuer receive a cash distribution and recognize taxes on capital gains. This makes share repurchases a more tax-efficient method to distribute cash even when capital gains and dividend tax rates are the same because investors can defer the tax liability."
- "Yet, according to Ford Equity Research, companies that have followed through on their share-repurchase commitments have outperformed the market by a wide margin. This may be similar to the observed outperformance of high-dividend-paying stocks. It does this by constraining managers' capacity to engage in value-destructive empire-building. Companies that pursue a disciplined policy of returning capital to shareholders, regardless of the method, may outperform precisely because they undertake fewer marginal investments."
- To read the full above-referenced article by Mr. Alex Bryan entitled: "Dividends or Share Buybacks? A Taxing Dilemma" click here: http://seekingalpha.com/article/929721-dividends-or-share-buybacks-a-taxing-dilemma.
About Light Media:
Light Media (OTC Markets: LGMH), Inspirational Media Specialist, markets, produces and distributes inspirational music, video, video games, print media and entertainment space through its network of radio, Internet, television, print and special events global business platforms and marketing and alliance partners. Light Media is also the 20th publicly-traded radio/media conglomerate (member) of the prestigious RBR-TVBR Media Index (see: www.RBR.com). For more information, please visit: www.LightMediaHoldings.com; www.InvaluableMedia.com or www.HotChristianStocks.com.
Cautionary Note Regarding Forward-Looking Statements: This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Light Media (OTC: "LGMH") and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements.
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SOURCE Light Media Holdings, Inc.