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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: johnd who wrote (48009)	7/18/2000 9:40:23 PM
From: t2	Respond to of 74651

What is the chance that they are onto another major pooling of interest aquisition and want to hold buybacks? Slim to none. My reasons. They don't want to lose out on such a great share buyback opportunity again. Just imagine if they bought back 10 million shares at $65---that would translate into a savings of 150 million for the company (based upon a stock price of 80 compared to 65). Of course their buying will cause the stock to move up but they still get a good price. They are probably better off using purchase accounting (and I bet they know it...now!)as the lost opportunity to buy their shares is not worth it. I think only companies like Cisco, JDS Uniphase, yahoo etc. have anything to gain with pooling. They don't buyback their own shares either. Companies interested in repurchasing stock will probably avoid it. If the opportunity arises again for MSFT, they may buyback a huge chunk of shares. In the meantime, it keeps the stock from dipping and less of a short sellers' target considering MSFT has this weapon if needed. In addition, I believe MSFT will use buybacks as a way to keep steady gains in its stock price over the years -- to help their employees old and new get steady gains--and this will keep the workforce happy. Good strategy, IMHO.