IDCN - gold, garnet, etc. Message Board

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Microcap & Penny Stocks : IDCN - gold, garnet, etc.

IDCN 0.00001000

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Mar 6 3:00 PM EST

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To: Jeff who wrote (1180)	8/23/1998 10:45:00 AM
From: Mr Metals	Read Replies (1) of 5908

Saturday, August 22, 1998 Firms use buybacks to shore up share prices Stock repurchase programs are criticized as short-term props for sagging stocks By IAN KARLEFF The Financial Post Jittery markets are prompting more companies to tell regulators they plan to buy back some of their stock, but many never follow through on their announcements. Most cite the relative cheapness of their shares and say buying their own stock would provide the best return on their cash. However, critics say a buyback filing only serves to prop up the share price temporarily, while counteracting the dilutive effect of options and deterring unsolicited takeovers. The trend to buybacks has accelerated this year -- 163 companies have applied to the Toronto Stock Exchange, compared with 202 in all 1997. If the pace continues for the rest of the year, the number of filings will be 21% ahead of last year's total. So far in August, 25 companies have asked the TSE for permission to buy back $1.9-billion worth of shares -- if they took up all the stock permitted. This compares to an average of 20 a month so far this year, and fewer than 17 a month in 1997. Critics of repurchase programs claim they simply serve as a short- term means of halting a stock's downward spiral. "It works as a temporary fix to stop a selloff from being overdone, but that's all I would give it," said Bill Mackenzie, vice-president at Fairvest Securities Corp. in Toronto. Fundamentally, nothing changes within a company when cash is replaced by shares and the effort turns into a zero sum game. GO IDCN GO..LOL Mr Metals

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