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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?


To: Pink Minion who wrote (98510)8/22/2002 4:14:50 PM
From: Rock_nj  Read Replies (2) | Respond to of 99280
 
Anyone think PALM is worth buying here at $1?



To: Pink Minion who wrote (98510)8/22/2002 4:51:55 PM
From: Timothy Liu  Read Replies (1) | Respond to of 99280
 
A company does not have to have stock buy back. Another company can have stock buy back WITHOUT stock option plan. This is a separate issue. You can question the merit of the two issues but they have to be done separately.

Net result of stock option plan is to have dilution and cash inflow because of selling stock at strike price.

Net result of stock buy back is (hopefully) transferring wealth from the company to the stockholder. It takes cash away from company and decrease outstanding shares. Whether it make sense or not and in what circumstance is open question. I think it is in the company's cash flow statement, is it not?

Tim