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Pastimes : Ask Mohan about the Market

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To: Joan Osland Graffius who wrote (7043)11/4/1997 11:29:00 PM
From: IceShark  Read Replies (1) of 18056
 
Joan, You missed my point entirely. But I understand since you are up in the Socialist Minnesota Respublika. -vbg-

The only way MSFT will pay off to an investor is to sell the equity to another investor, IMO. I am strictly a cash flow type of guy in the final analysis, since I know accounting to a degree. Given current and historical tax treatment it certainly does make sense to plow unusable cash into repurchase of stock, it's just that the companies have used this to provide a few more mirrors and colorful smoke.

Taking a position that the stock share "appreciation" is all you need is similar to those infomercials on late night television that tout buying real estate for nothing down, refinancing by various semi-legal means over original purchase price, and counting the cash proceeds as "income"! -g- The only difference is time frame before it falls apart.

Regards, Dan
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