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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Don Lloyd who wrote (67775)	9/16/1999 10:33:00 AM
From: Freedom Fighter	Read Replies (1) \| Respond to of 132070

Don, Agreed. I think you have to take it on a case by case basis. Depending on how you value things, the dilution could have a significant enough effect on EPS growth that it would have significant valuation implications. In general, if the company has terrific reinvestment opportunities that will generate high returns on capital and it's stock price is ridiculously high I'd probably prefer dilution. If it's a mature business and the stock price is very cheap I'd rather buy in the shares than invest in low return new ventures. That's a simplified version of my own thinking. Wayne