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Technology Stocks : CheckFree (CKFR) -- Ignore unavailable to you. Want to Upgrade?

To: DADEPFAN who wrote (7386)	9/9/1998 12:06:00 PM
From: TLindt	Read Replies (1) \| Respond to of 8545

>>>So, a share buy-back is a good thing for us stockholders? Yes it is very good for us stockholders.

To: DADEPFAN who wrote (7386)	9/10/1998 9:49:00 AM
From: BitWizrd	Read Replies (1) \| Respond to of 8545

So, a share buy-back is a good thing for us stockholders? Well, the consensus on the board so far seems to be that it is, in this case. By reducing the number of outstanding shares, the company increases the value of the number of shares remaining after they've bought back the shares. But I'm not sure this is CheckFree's best move for the long term. I've been long CKFR since the day of the IPO. I think the money used in the buy-back should have been spent on the kinds of things that maintain CheckFree's leading position in the field. I recognize that management may be feeling pressure to boost share price after restating forward earnings, but I can't help but wonder if this is a mistake. CheckFree is already a pretty thin floater, and reducing the number of shares outstanding could also increase price volatility. Volatility is not necessarily a bad thing, but we've seen a lot of it already in this company. OTOH, none of the other competitors have managed to mount much of a challenge to CheckFree's leadership position. Perhaps it's OK to relax a tad, and reward shareholders for sticking to their guns. I really just can't decide how I feel. Ask me again at 27. Bit.