Question-and-Answer Session
Randy Harp
First question I think Pre-Paid only purchased about 15,000 shares in the second quarter. Why such a low number when share price was down. Steve?
Steve Williamson
We go through o the same process pretty much every quarter when we make decisions relative to our stock buyback and we take into consideration a lot of things not only Pre-Paid Legal operational metrics but also kind of big picture things. I will try to address everything at least that I considered it and Randy can add to that if he would like.
The one thing that was kind of bothersome to me of course, and in all these questions is the overall production level that we have. We have not been setting any records for new production. And the other challenge that saw in the second quarter, going into second quarter right after the first quarter purchase was the level of cancellations that we had for the fourth quarter and the first quarter were both over a 150,000 units. And I was a little concerned that the global economy was causing lot of that there. We really want to do evaluate what was going on the cancellation side.
And then kind of the again just a big picture economy when we're going to turn out of this and then when we walked into the period when we purchased, the prior quarter we actually were able to buy on average of about $32 of share, a little over $32 share. So, we had traded up with our earnings release pretty quickly in that first day. I think we are up –a buck or two in the first couple of trading days.
The other thing I wanted to add is we kind of step away whenever the stocks move in pretty aggressively you don’t like to push the stock, you can kind of participate in it. So we decided to kind of step away. We then ran up pretty aggressively and just got to a level that we feel like will be better served to kind of wait and see what's going to happen on the global economy and kind of what happens with our own individual production and cancellation levels.
So, that kind of why we never really got out and really didn't buy any open market purchases during the second quarter. Those purchases primarily were non-market purchases that we've I think addressed before from the associate investment club, folks that have physical fiscal stock certificates and then from our employees that want to diversify out of the company stock within the 401-K plan.
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