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Biotech / Medical : Merck
MRK 106.45+1.1%Jan 2 9:30 AM EST

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To: margaret foley who wrote (592)2/26/1998 11:50:00 PM
From: LWolf  Read Replies (1) of 1580
 
margaret and everyone, AAA bond ratings may seem boring, but....

think about it.. they've just said the because of MRK's great cash flow (read everyone's envy), their repurchase program is NO problem.

Repurchase means buying back shares, which reduce shares outstanding, and drive up EPS! Higher EPS typically ends up meaning higher stock prices. Higher stock prices for MRK could lead to a split.... and then we start over again.

Works for me!

Laura

PS Haven't you folks been here'in: CASH IS KING. MSFT and CSCO have ZERO long term debt. They buy companies with 'slush funds'.
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