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To: Chuzzlewit who wrote (38232)4/17/1998 2:51:00 PM
From: SecularBull  Respond to of 176387
 
>>Surely you (Jim P.) are seeing a pattern emerge here.<<

Don't count on it.

LoD



To: Chuzzlewit who wrote (38232)4/17/1998 3:12:00 PM
From: Jim Patterson  Read Replies (3) | Respond to of 176387
 
OOpps
You are right,
I did put 1 year of intrest into one quarter.

That was a mistake, and thank you for pointing it out.

My point is that debt lowers the bottom line over the long term going forward.
Buying stock back boosts the stock price short term. Once the buying presure from the buy back is gone, the money and the short term benifit is gone.
The debt will be around for 3-20 years.

Which would you rather have in a long car race ?
A shot of Nitros Oxide for a few laps, and a flat tire for the rest of the race, or neither.

They have the cash to expand, but they are so set on buying their stock back, that they would rather issue debt than stop.
It is one thing for IBM to do this, They are not growing.
It is another thing when a hot shot like DELL does it.

IMO,
this is either a sign that the co is not generating cash as fast as we are lead to believe, or a huge longterm management screw up.

Jim