Chad Therapeutics to Buy Back Shares of Stock

Chad Therapeutics Inc., a Chatsworth maker of portable oxygen and oxygen-saving systems for lung patients, said it has authorized the repurchase of up to 100,000 shares of its common stock per year in private transactions.

The company said its stock is undervalued and trading volumes have been lighter than expected. Chad said it plans to buy back shares in blocks of no less than 10,000 at prices no greater than the fair value of the stock.

Chad Therapeutics posted record earnings of $564,577 for the latest fiscal quarter that ended March 31, up 77% from $318,893 a year earlier. The results were on a 56% surge in revenue to $2.5 million. The company has about $2.3 million in cash.