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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE)
SIII 0.00010000.0%May 12 5:00 PM EST

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To: the hube who wrote (12589)1/22/1999 4:30:00 PM
From: Rob  Read Replies (2) of 14577
 
Right, John. Guys, I think we need to relax a little about this bit of boilerplate. True, I'm long some calls on SIII, so my bent at the moment is bullish, but we've all seen this before. Just because MSFT routinely buys large amounts of stock in the open market doesn't mean that's the only way to amass shares for uses such as those stated in the filing. MSFT can do this - and does - because it generates an embarrassing amount of cash and needs to put it to work. Struggling companies and turnaround plays need to be more creative simply because their resources are limited and targeted (hopefully) towards new technologies and, yes, beefing up a dispirited talent pool.

This new SIII management would be suicidal to effect a dilution of the stock at these levels. I'd expect that they're looking out a couple of years and are hopeful that they'll need the shares for a split or "consolidation-type" acquisition. Just IMHO. Good luck. Rob
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