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To: SouthFloridaGuy who wrote (49300)	2/22/2001 11:45:58 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 77397

Do you understand why companies engage in stock buybacks, when they should do them, and the consequences to the balance sheet? Yeah, but press releases about plans for buybacks that might never happen are free!

To: SouthFloridaGuy who wrote (49300)	2/23/2001 12:29:34 AM
From: t2	Respond to of 77397

deleted

To: SouthFloridaGuy who wrote (49300)	2/23/2001 12:29:34 AM
From: t2	Respond to of 77397

Do you understand why companies engage in stock buybacks, when they should do them, and the consequences to the balance sheet? Are you aware that many of the problems that companies in the telecom sector are experiencing are partly related to stock repurchases and the subsequent detioration of cash positions on the balance sheet? Yes, I am aware of the reasons for stock buybacks. Yes, companies such as wireless operators or CLECs should not be buyback their shares. You obviously twisted what I stated. I am referring to companies that have large cash positions and that also expect growth the return soon. OK---one quarter, two quarter, maybe 3 quarters of weakness. When is a company supposed to buy their stock...when it was 3 times current stock price??? It is a sign of confidence and looking beyond the valley and actually taking advantage of the weakness. It makes the stock stronger--better positioned to make strategic acquisitions in tough times using a relatively stonger currency. As Mucho implied, they don't have to actually buyback that much but the plan could fit into their corporate strategy in preparation for the longer term. My statements are for cash rich companies not those that could face cash flow problems in tough times. And to answer your question--..yes, I know why companies engage in stock buybacks and their consequences to the balance sheet.