Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Mike M2 who wrote (72162)	12/21/1999 4:51:00 PM
From: Simba	Respond to of 132070

Mike, Wayne: Thanks for your reply on repurchases vs. dividends. I thought on the same line as Mike, that it would have been more prudent to invest the capital in some cases than buy a higher priced stock, unless it is to drive it even higher. In Boeing's case, with their large level of debt (40% of equity) and debt servicing interest and also the large amount of cash needed to launch a new plane program ( 1 -3 B)to counter govt subsidized Airbus, I would have thought they would be using the 1.6 B to pay off debt or invest "wisely" for future development programs. Instead their repurchase seems to have been based on short-term thinking. And it did not have the effect the CFO had. Maybe they feared a hostile takeover and were forced to support the stock price. I agee if their own stock was a good bargain they should buy it back, only if they don't "need" the capital in the near future. Wayne, agree with you on the tax drawback of a dividend. Simba