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Technology Stocks : Semi Equipment Analysis
SOXX 314.52-0.6%Dec 11 4:00 PM EST

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To: Donald Wennerstrom who wrote (54553)11/7/2011 10:26:47 AM
From: robert b furman   of 95572
 
Hi Don,

I'm not looking for a study here,but the number of shares outstanding in many stocks have gone down.

This I believe is not the case in tech land at least to a degree.

It may well be the options dilution habit of tech needs to be finally and forever abstained and price may then not have to fight dilution.

In fact buying back stock supports a higher stock price.

I'd like to see this price destroying practice go the way of the dinosaur.

In many sectors,the repurchase of stock is alive and well (I commend Nvls in the semi's).

As this practice proves that price appreciation is a corollary - it will become more broadly understood that raisng capital through the many synthetic ways of naked shorting,is a NONO if a company has an actual policy of repurchasing stock.

To further my strong commitment towards stock repurchase - I also support the issuance of cheap debt so that more outstanding shares can be repurchased.

If you can buy a share of your company 20-25 percent below the depreciated book value and only pay 3 percent interest,it sounds like a deal to me - especially for the cash rich companies that do not have M&A or organic growth as viable growth strategies.


Bob
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