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To: Zeev Hed who wrote (12159)	6/22/2000 12:35:00 AM
From: TimF	Respond to of 60323

Art, I beg to disagree, it used to be that companies bought shares only when they were "cheap", the larger companies have adopted buy backs which are as regular as clockworks This might be because of all the stock options a lot of companies issue. If they don't do stock buy backs then the shares will get diluted. Tim

To: Zeev Hed who wrote (12159)	6/22/2000 8:20:00 AM
From: Art Bechhoefer	Respond to of 60323

Zeev, yes, the question of issuing debt or new equity SHOULD be based on some rational business judgment, but often it is based more on the style and personal preference of those who control the company. As an example, a local company (Rochester, NY) developed a patented process for printing, using non-toxic, environmentally benign inks, which attracted interest from a well financed customer, the U.S. Government. The government wanted to use the process for printing currency. The owner contacted me about raising capital to increase plant capacity to accommodate the new customer. Here was a company already profitable, with positive cash flow -- the ideal situation for additional common stock, or in the alternative, issuing convertible preferred. The owner, however, was adamant about raising capital ONLY through a bond issue. He simply was uncomfortable diluting his own majority ownership of the stock. I sent a newsletter to my clients, entitled "New Way to Make Money," but most clients were interested only in an opportunity to buy stock. Art