IBM Message Board - Msg: 3251801

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Technology Stocks : IBM

IBM 304.38

+0.2%

Dec 24 12:59 PM EST

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To: Earlie who wrote (2231)	1/24/1998 7:56:00 PM
From: Bill Martin	Read Replies (1) of 8219

Re: the shareholder equity is disappearing out the back door with each of these purchases (a clever form of dilution) You're right that equity/sh decreases with buy backs (a mathematical certainty if you do a bit of calculus on the problem), but I don't know where you come up with dilution? Unless you're redefining the word "dilution" to mean whatever you want it to mean, buy backs are plainly, solidly, anti-dilutive. There's no way to argue the point. Earnings per share go UP when you buy back stock, not down, so there's no way I can see it is dilutive in any sense of the word defined on Wall Street. Have I missed something? Bill

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