Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 226.05

+1.3%

Nov 14 9:30 AM EST

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To: Gottfried who wrote (26987)	12/7/1998 4:35:00 PM
From: Will Lyons	Read Replies (1) of 70976

Gottfried It is not a matter of beeter or? By issuing stock for debt the company increases the number of shares and reduces the debt. the result is that the leverage is refuced so that the stock becomes less volatile but at the cost of increasing dilution. So if you want action ala the hedge fund that just went up in smoke becauseit was leveraged to the hilt then you want to keep ahigh debt/equity ratio. But if you want less risk you choose a stock in a co that has no debt [ and no long term leases either My time is nearlyup so if you want more please ask Regards Will

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