re: >>>I think you still don't understand the purpose of stock buybacks. These are dividends, and they work especially well when management believes the stock is undervalued<<<
I think we could both debate this topic for quite some time.
You are looking at stock buy backs in the most positive way possible.
I am looking at stock buy backs from a long term negative point of view. I see them as a sign of greed on managements side. Drive up those stock options.
If the company finds itself short of cash in 2 years, The buy backs may be reflected upon as a poor use of cash.
If this never happens, It will be, as it is today, reflected upon as a great idea.
As for Dividends, Taxes, and capital gaines, These are just reason points to make a case one way or the other.
Investors are not intrested in Dividends today. In 1974, they were.
You are correct, and I know/knew that DELL had LT debt before, and they paid it off.
Do you know when the last time was that DELL issued LT debt ?
1995 is the last increase of LT debt on the ballance sheet.
And DELL paid that off.
Why is DELL suddenly in need of raising $500 million Cash.
Is their business not generating cash any more ?
If it is, then why the need?
or does DELL not need the cash, they just thought they would take out a $500 million dollar loan just because they can?
Jim |
