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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: IceShark who wrote (53594)	7/28/1999 8:53:00 PM
From: pater tenebrarum	Read Replies (2) \| Respond to of 86076

the '87 dip, while short-lived, sure didn't feel like your average run-of-the-mill dip back then. taking loans for buying back one's own inflated stock is a favorite U.S. corporate pastime. it doesn't make economic sense,however. when stock prices are high and interest rates are high as well, the issuing of equity is obviously the best way to pull in capital for a corporations investment requirements. the stock buy-back craze has helped the market to reach absurd valuation levels, but if anyone thinks that it is in shareholders' long term interest, better think again. once a bear market hits, the stock buy-backs will look like a complete waste of perfectly good money. but of course bear markets are now outlawed...