Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : GenRad Inc.(GEN) entering the ADSL market! -- Ignore unavailable to you. Want to Upgrade?

To: Jack Be Quick who wrote (216)	4/3/1998 7:06:00 PM
From: LPasko	Respond to of 283

I think it's good. First, many companies fail to follow through on share repurchase plans, but never tell anyone. So I applaud them for this. Second, this may mean that they have found a use for their cash reserves--they seem to be hinting that an acquisition is in the works. I think given GEN's current thriving business, we can rule out a cash shortage as the impetus for this announcement.

To: Jack Be Quick who wrote (216)	4/4/1998 3:54:00 PM
From: Marantz	Read Replies (1) \| Respond to of 283

Acquisitive companies have to use buybacks sparingly. That's because neither the buyer nor the seller can have bought back more than 10 percent of the number of shares issued in a stock deal if it will use pooling-of-interest accounting, a more favorable tax treatment. Note that the buyback rule applies to both the buyer and the seller. Could Genrad be keeping themselves attractive as a buyout target through this action? Marantz