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Technology Stocks : IBM
IBM 304.62+0.1%11:10 AM EST

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To: Bill Martin who wrote (2275)1/25/1998 10:06:00 AM
From: Earlie  Read Replies (1) of 8219
 
Bill:
Earnings per share do go up when a company buys back its own stock.

Dilution occurs because the number of shares outstanding is declining relatively slowly, while shareholder equity is declining more rapidly. Each share of IBM represents about 8-9% less in actual assets today than it did a year ago. Equity value per common share stood at 39.6 as of March 31,1996. As of September 30, 1997, it had deteriorated to 19.9. IBm's debt is rising rather quickly, especially when one factors in the debt in the equipment leasing subsidiary.
Best, Earlie
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