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Technology Stocks : Novell (NOVL) dirt cheap, good buy?

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To: Bryan C. Simpson who wrote (28437)10/5/1999 11:46:00 AM
From: Bosco  Read Replies (1) of 42771
 
G'day all - hi Bryan, it would be a frightening scenario for a company trading its own stock, even if it were legal. Just imagine, how would it explain the insider trading charge?! And who among investors would be willing to trust the co?

Loring's scenario [retiring stock to treasury] is one way. The company can also buy stock back for ESOP purposes. The former is better b/c it reduces the outstanding shares and thus improve the per share earning ratio. The latter is still good b/c the company might have to issue more stock [for ESOP purposes] otherwise

best, Bosco
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