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Technology Stocks : XLA or SCF from Mass. to Burmuda
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To: coach4def who wrote (665)8/11/2000 11:05:10 AM
From: Labrador  Read Replies (1) of 1116
 
Why does the stock trade up on this news?

First they say that the gain was not as large as assumed; then they say that they'll liquidate some of the company's cash to permit shareholders to pay any tax that's due.

So the company's coffers are being reduced to pay taxes. If this is so positive, they should pay out the entire gain to shareholders.

What would be more positive if they'd say that there is no tax due to the U.S. gov't.

All I can think of is that mgmt perceives that shareholders are running to avoid a tax hit. I think that they're running from much more than that.
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