To: Ausdauer who wrote (6837 ) 8/31/1999 10:37:00 AM From: Sam Respond to
Jay is right, this is zero to worry about. Authorizing the new shares just gives them room for effect a split or buy a company with stock quickly. If you trust management, you trust that they know who to buy and what price to pay. With the stock at these levels, buying a company that complements or expands your own makes good sense, at the right price of course. CSCO has used their habitually expensive stock in this way for years extremely successfully, in fact, it is their expensive stock that has made their spectacular growth possible, along with the clarity of vision of their senior management. They have even been able to pay what appeared at first blush to be extremely dear prices for some companies, but, given their market valuation and the currency that they paid in (their stock), it was a bargain for them. If you believe that EH and his team have the same kind of acute vision, you vote for him. If you don't believe that, you should sell the stock now, with it near all time highs.
