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To: TimbaBear who wrote (343)8/8/2002 11:09:26 AM
From: Uncle Frank  Read Replies (1) | Respond to of 562
 
>> No Frank, the case of the stock buy is an expenditure of actual cash on the part of the company, whereas your example is the absence of extra profit. Quite a difference.

I don't see the difference. In both cases the company made a long term arrangement to sell at a fixed price, which was to its benefit at the time the contract went into effect. In both cases that arrangement resulted in the company receiving less revenue than it would have realized in the spot market. If it is reasonable to account for the loss of opportunity in one case, it should be in the other. Imo it isn't.