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Technology Stocks : RATIONAL SOFTWARE- BUY OR HOLD -- Ignore unavailable to you. Want to Upgrade?


To: Deanne who wrote (2393)4/24/1998 2:02:00 PM
From: Thomas Haegin  Read Replies (1) | Respond to of 3115
 
Deanne, Randy, I agree to both of you: My suggestion is that as better than expected cash-flow was available, they thought why not use some of it now? Maybe only now they got really convinced that their business train has left the station.

In any case, it's good news - should one 2nd guess it :-) ?

Worth 2›, at most, of course.

Thomas



To: Deanne who wrote (2393)4/24/1998 2:35:00 PM
From: SidStock  Read Replies (1) | Respond to of 3115
 
With action of H&Q yesterday, you also have to wonder if
they knew about the buy back ahead of time?

There are some other issues with doing a stock repurchase.
This does tend to put a limit on doing any acquisitions.
You cant repurchase your own stock and then expect to
use stock to acquire another company. Essentially you
are using cash to buy the company (since you used
cash to buy your stock, then diluted the stock back
to buy the company). Thus this may signal that RATL
is out of the acquisition game for a while (unless they
really do want to burn cash for it and dont mind paying
taxes).

Hangin on with a 65% gain...Sid