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


To: diana g who wrote (2397)4/24/1998 5:04:00 PM
From: Randy Ellingson  Respond to of 3115
 
"I think this provides an option for the company. They haven't said "We are buying 6 million shares." They may buy half a million. They may not buy any. They may buy tomorrow, next week, next year or never. The authorization gives them a tool to use for various possible purposes."

That's right. I think that's the way all stock repurchase approvals go. There are never any guarantees they will actually buy any shares...

Funny how all those trader guys (at least by my assessment) come in here once RATL gets the big move. I'm willing to see some more rocks in the road along the way, and will take the long term outlook as I have been doing. I think I've been in this stock more than a year now, since I owned some Pure Atria. Hope the apparently bright future isn't followed too quickly with new doom and gloom. RATL has sure helped minimize the last two days of sliding (thanks to my MSFT/INTC positions).

Randy



To: diana g who wrote (2397)4/24/1998 5:33:00 PM
From: SidStock  Respond to of 3115
 
YOur right the repurchase is just an option. Usually this is
done over a 1 to 2 year period... buying the stock once a
quarter.

I was also trying to make the point that this somewhat
signals a strategy to reinvest in itself and use the cash
to improve shareholder value. Instead of in the past
where they where more focused on M&A's which tended
to decrease the share price especially for the short
term. Generally you dont do a repurchase if you are
eyeing other significantly sized companies for m&a's.
NOt to say they are "locked into" repurchasing...
they may choose not to if the stock say goes to 50
(we longs should be so lucky!).

Sid



To: diana g who wrote (2397)4/25/1998 1:30:00 PM
From: John F. Dowd  Read Replies (1) | Respond to of 3115
 
Right On diana. Also there is nothing to prevent them from buying their own stock back which will tend to increase the value of the stock and then having a higher priced currency to execute a takeover. It actually makes sense to do it if you feel that PE wise your stock is undervalued vis-a-vis the others in the same and allied fields.

JF Dowd