Oracle Corporation (ORCL) Message Board

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Technology Stocks : Oracle Corporation (ORCL)

ORCL 219.89

-1.3%

Nov 17 3:59 PM EST

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To: brushwud who wrote (17767)	1/12/2003 10:47:20 AM
From: hueyone	Read Replies (1) of 19079

You certainly disregarded money already returned to shareholders in the form of stock repurchases in posting #17742, in which you claimed ORCL has only returned 9% on invested capital over the past ten years. Brushwud, I wanted to revisit that statement from you. I don't regard those share repurchases as money returned to shareholders like I would regard dividends as money returned to shareholders. Instead, I regard those share repurchases as a proxy for the unreported stock option expense. After all, all these share repurchases are doing is partially offsetting dilution from exercise of stock options. If I start out as a long term investor in Oracle with X percent of the company, and ten years later after many stock options have been exercised and many shares have been repurchased, I end up with less than X percent of the company (or remain even at X percent of the company), then I don't regard those share repurchases as Oracle returning money to me as a shareholder. In the long run, Oracle is taking away a bigger percentage of my ownership than it is it is returning with this stock option/repurchase game. Regards, Huey

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