Cymer (CYMI) Message Board

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Technology Stocks : Cymer (CYMI)

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To: TideGlider who wrote (8279)	11/5/1997 4:22:00 PM
From: Maxwell	Read Replies (1) of 25960

TideGlider: <<CYMER would not have to keep the stock. The company could block trade in to an institution for a small discount. Then CYMER will have made money and some of the stock value would have been returned.>> Perhaps you could clarify my confusion. When a company says they are going to buy back shares it means that they want to reduce the number of outstanding shares available for the secondary market for trading. This is good for investors since it tells them that management cares about the company and the investors. Announcement of this magnitude usually makes the stock goes up. However what you are suggesting is that CYMI would buy their own stock for cheap and sell it later. What would CYMI says when CYMI decided to sell the stock at a later time for cash? They would make an announcement like "CYMI is selling 1M CYMI share today or $40 a share". This again would dilute the share by another 1M share. This doesn't look good a bit. If CYMI does what you suggested then make no announcement what so ever and buy and sell shares quietly just like all of us. No announcement would most likely bring no good news to CYMI. Maxwell

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