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Gold/Mining/Energy : GEAC.....Canadian best kept secret
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To: PlayTheKing who wrote (907)10/20/1999 10:55:00 PM
From: Michael Dean  Read Replies (1) of 1571
 
I agree.

I have never seen the purpose of share buy-backs in a company that does not pay dividends and isn't likely to do so in the near future. Sort of like a stock dividend - it sounds good, but is mostly an illusion.

In an acquisition driven company, such as GEAC, I would see this as an admission that either there are no suitable targets out there or that valuations are too high.

In the later case, I would prefer that the company retain the funds so that it is able to make suitable acquisitions when prices correct.

GEAC has often accumulated sizable cash reserves in the past and this has helped with acquisitions, such as Dun and Bradstreet Software, in the past.

In valuing a stock, one always looks at the cash on hand as part of the picture. Cash also means that the company can ride through economic slowdowns with much less risk.
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