Worrisome to me has been the lack of cash build-up, which might have allowed the company to really broaden out. Using it to buy back stock is a disappointing activity.
Earlie, taken from the most recent 10Q.
"During the third quarter of fiscal 1999, the Company repurchased 18 million shares of common stock at an average cost of $22 per share. The Company is currently authorized to
repurchase up to 100 million additional shares of its available common stock and anticipates that such repurchases will constitute a significant use of future cash resources. At
November 1, 1998, the Company had equity option arrangements that entitle it to purchase 40 million additional shares of common stock at an average cost of $28 per share at
various times through the third quarter of fiscal 2000. The above share and per share information has been restated to reflect the Company's two-for-one stock split effected on
September 4, 1998."
Doesn't appear anything was purchased near the top, or will be for the forseeable future, unless of course, MB's prediction of $22 comes true.
And what would you like to see the company broaden out into? The is a PC company, plain and simple. CPQ wants to be another IBM. MD has never stated any intent other than doing what he does best, PCs... Sorry, but I gotta trust MD on the future direction of the company.
And here's a question for the financiall wiz types. Are these stock purchases being retired, or is this account for on the "Marketable Securities" line item? Since the Available outstanding shares continues to shrink at a healthy clip, does that mean these shares are being retired?
Thanks.
Gary |
