To Earlie from Earlie:
I'm sure this has already been posted, but one has to enjoy the irony of it.......
With the markets in complete rout mode, IBM announces a $3.0 billion plus stock buyback and in the process turns a frightened market (minus 550 points) back to the bullish path. Some enquiring minds, this dullard included, requested of the company whence might the money come from to finance the announced philanthropy, given a shrivelling balance sheet. Should have waited. IBM recently announced a shelf filing with the S.E.C. to flog ......are we all ready......$3.0 billion of debt securities, preferred shares, depository shares, capital stock, and warrants (i.e., whatever the lambs will buy). No underwriter was mentioned. The irony would be complete if the company does in fact end up selling a part of this issuance as equity (unfortunately not likely). Nothing like selling one's equity at a discount (private placement) so that one can buy it in the market at premium prices. Oh well, what's another few billion in debt. The market didn't notice the falling shareholder equity last year, and probably won't this year. Love that Louis.
Happy Thanksgiving to all of you south of the border.
Best, Earlie |
