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Politics : Ask Michael Burke

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To: Earlie who wrote (57755)	4/28/1999 9:54:00 AM
From: valueminded	of 132070

Earlie: In ref to IBMs financial statments. Where did you get them for this quarter. All the news services I could pull up and the SEC filings did not show anything in the detail level that you and MB obtained. Additionally, if IBM is buying back shares and using debt to do so, obviously that debt comes at a cost. Shouldnt their EBITDA be decreasing as a result. ie 2billion dollar buy back retires 10mil shares. Interest payments on 2bill at 6% would be 120mil/year or roughly 12$ per retired share. This should be a net negative unless their before tax earnings are in excess of 12$/share. I understand this is rudimentary analysis as I do not include the "tax benefit" of lots of debt. Comments.... thanks

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