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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: Greg Jung who wrote (7249)	10/29/1997 11:22:00 PM
From: Jinfu Chen	Respond to of 25960

Regarding IBM buying back shares of its own stock, I don't believe the main reason is to boost stock price. Companies who grant employee stock options and/or have discounted employee stock purchase plan need to repurchase stocks in the open market from time to time when the portion of the designated shares is running low. Some buy shares in open market regularly even when price isn't necessory the best, see MSFT, INTC for example. When stock price drops significantly, it does give companies incentive to purchase shares out of the regular schedule. There're several articles in financial magazines recently about this potential liability of companies having to purchase shares of stocks as part of standard operating procedure. Intel for example, spent $1.2b for stock repurchase in Q1CY97, equivalent of 60% of its net income, according to an article in the Nov. issue of WORTH.