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Technology Stocks : IBM -- Ignore unavailable to you. Want to Upgrade?


To: Robert Scott Diver who wrote (6960)11/3/2000 12:31:35 PM
From: Kirk ©  Read Replies (1) | Respond to of 8218
 
I always wonder why people are concerned about EPS rising because of the reduction in shares outstanding.

Some people would rather have the money returned to them as a taxable dividend so they can help retire the National Debt sooner.

Others are smart and might just sell 4% of their IBM position to get a 4% dividend, but then they get stuck paying a lower tax rate and keep more of the "dividend" which doesn't help with the National Debt.

Kirk out ;)



To: Robert Scott Diver who wrote (6960)11/5/2000 11:49:00 AM
From: art slott  Read Replies (1) | Respond to of 8218
 
Robert, EPS growth from stock buy backs sure mean a hell of a lot more to shareholders than do stock splits etc.
For one it means IBM is producing excess cash that affords it the luxury of annual buybacks.
Like you said, it aids the PE ratio which of course is the single best measure in valuing the stock.
The only ones who complain about it don't own the shares that are gaining in value.