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Technology Stocks : IBM
IBM 292.53-1.6%9:52 AM EST

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To: Skeeter Bug who wrote (4056)10/23/1998 6:45:00 AM
From: Robert Scott Diver  Read Replies (1) of 8218
 
SB, RE. "the point of my prior post was to point out that the method of accounting doesn't matter. debt is increasing. shares are being bought back. period." My impression was that this discussion started when you said something like "money is being borrowed to buy back shares". This is simply not supported by the facts. That is my simple point. Am I incorrect in the assertion that it can not be shown that money is being borrowed to buy back shares? The fact that money is being borrowed and shares are being bought back doesn't support the conclusion that money is being borrowed to buy back shares. It can be shown that the borrowed money is being used for other purposes. Whether this increase in debt is good or bad is another discussion. IMHO the share buy back and borrowing are both good business decisions. This view would seem to be supported by the direction of the stock's price. Scott
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