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To: lowell who wrote (2100)	1/28/1998 12:27:00 PM
From: Brad	Read Replies (1) \| Respond to of 27968

Lowell, If you could borrow money at any reasonable interest rate, buy something for 30›, then have it increase in value to $1.00 or even perhaps $4.00 or more, would you do it? That's over simplified a bit, but the basic idea is the same. Best wishes, Brad

To: lowell who wrote (2100)	1/28/1998 12:30:00 PM
From: Richard V Davis	Respond to of 27968

Lowell; On the face of it you are correct. Borrowing money for this purpose would not make sense. If, however, management has full and complete confidence that the share price is going to increase tenfold there is little place better to put funds (even borrowed funds) into this purpose. Another area of investment would be to put 300-500K into building a world class IT recruitment/placement organization. This would provide instant cash return on the investment and positively impact the bottom line. I think that it would be quite difficult to construct such an organization organically. It would require investment in skill sets that are in great demand. As I have stated before (probably too often. grin) IT placement both contract and perm are the hottest of the areas in the red hot industry. Just my thoughts. But on your initial point and to paraphrase little engine: Would you not borrow half a million dollars if you knew you could pay it back within six months for a net of fifty thousand plus interest? I would. Rick

To: lowell who wrote (2100)	1/28/1998 3:34:00 PM
From: Andrew H	Read Replies (1) \| Respond to of 27968

>>I have never heard of a company borrowing money to buy back their own shares<< Lowell, I thought the same thing when I read this. Sound like highly creative financing. (:>) Perhaps they need an experienced CFO? It would be nice to know the exact terms of the 25M and what exactly "minimal dilution" means. Also it is EXTREMELY unusual for a CEO to suggest he will quadruple earnings in one year (the .40 estimate for 1998, assuming .10 this year). This story gets deeper and stranger each day!