RE: Won't bet ya $1, but how about a BEER! We can toast each other on some warm summer day!
How do you shake hands over the internet ? :)
You are On. :)
On the DEBT,
While the proceeds from the debt may not be the same $$ that buy the stock back,
Issuing debt and building factories and buying stock back, You are still spending cash on both regardless of the source.
No debt and it is one or the other. If you have to look at the way I am, if they buy back any stock now that the debt is done, then they are using the debt to buy the stock.
So you like my point of JIT-BTO.
There are a lot of questions surrounding how things are done and how they will affect the outcome.
Where the benifit is ect.
Today, everyone likes to talk about how fast inventory depreciates.
This is probably very true. But there is one differance between today and 2 years ago.
Today, a machine built 6 months ago, while now depreciated in price, is still a beeffy machine that is not obsolete and still in demand.
2 years ago, that machine may not have depreciated as far as part prices go, but its preformance had fallen by the way side rendering it obsolete.
I guess I am saying the reason for the depreciation of inventory is different today than it was 2-4 years ago.
If you look closely at the CPQ promotions, most of the free monitors are given away with P II machines. That tells me that the inventory is not obsolete, they just have a bunch of it.
Last, In my expample I talk about an unrealistic sudden drop of orders. In the real world, it is possible for the same thing to happen only much more subtlely and over a longer time period.
Jim |
