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

To: Cary Salsberg who wrote (3676)	2/15/2008 10:29:20 AM
From: brushwud	Read Replies (2) \| Respond to of 3813

A real story for NVLS, which seems to be overlooked, is their share buy back. You can check my figures, but I recall that they had 105 million shares at year end and had bought back 21 million shares in 2007. At $23.50, market cap is $2.47B. With over $700 million in cash and expected positive cash flow, NVLS could continue to make significant buy backs. Share buybacks are the worst thing in the world. If they have excess cash, they should pay cash dividends. Intel has been buying back shares for 18 years at an average price of $20 and after all that, the price is around $20. Share buybacks pit managers/employees vs. investors. Cash dividends make a stock less volatile and reduce the value of stock options.