SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Ask Mohan about the Market
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Bearded One who wrote (6982)11/4/1997 3:07:00 PM
From: IceShark  Read Replies (1) of 18056
 
Beard, I will add a task to your yeild assignment, if you so agree to undertake it. -g-

The cash/stock buyback issue certainly has a shread of merit. However, there are a couple of contrary items to include in the analysis. The tax benefit is no where near 30% since much of the underlying equity is beneficially held in tax deferred (or free) status, i.e. pensions, 401(k), IRA.

Then there is the greatest scam of the decade, namely excessive compensation through the granting of stock options. (Do you realize some companies grant these buggers all the way down to telephone receptionists and even trade suppliers, of all things!) The upshot of which is increasing float despite the buyback and no recognition of the expense, since FASB caved in on the matter.

Good luck on your assignment! -g-

Regards, Dan
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News