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 : IBM -- Ignore unavailable to you. Want to Upgrade?

To: DavesM who wrote (3573)	7/22/1998 2:14:00 PM
From: Arrow Hd.	Respond to of 8218

IMHO, stock repurchases are far more important in today's world than dividends. Eliminating the dividend would definitely hurt for the obvious reasons and the fact that some funds wont buy a stock unless it provides a cash flow such as dividends. But stock buybacks have more flexibility. First, you dont have to spend any money leaving it in-house for other uses. When spent, it is done when it is most advantageous. But in general, stock buybacks tend to have more positive effect on the company's stock price than dividends so I would be enormously alarmed if IBM "lost" this option for whatever reason. It is a significant factor in providing for support when there are downdrafts and IBM watches it's price tick by tick in a very sophisticated trading operation. The dividend issue is discussed once a year by the Board, the buyback program is managed every minute of every trading day.