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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (45664)	2/4/1999 11:26:00 AM
From: Earlie	Read Replies (1) of 132070

MB: You don't get it and neither do I. How can the stock price possibly fall, especially when they are executing Louis' strategy so well? OK, let's review that strategy and see if we have missed anything. Continue to sell off company assets to create cash. Issue tons of debt to raise cash. Use cash to buy back stock. (As an aside, sell personal stock at every opportunity.) Grab "service" contracts. (Get them even if the company can't make money on them) Book as much of those (multi-year) contracts in year one as is required to keep the revenue line from dying and to shore up the bottom line. By whatever means, cut tax rate every quarter. If stock weakens, split it. Brilliant strategy. Plenty of time provided for execs to sell all stock and a "virtual reality" company is still there for the lambs to trade. I still don't understand the price weakness. (g) Best, Earlie

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