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To: TCBinAugusta who wrote (82674)	11/28/1998 9:35:00 PM
From: B.J. Lee	Read Replies (1) \| Respond to of 176387

TCB, MSFT is a software company, and why it has market cap of $300B and INTC and DELL are hardware companies. Even with stock repurchase, market cap seems to be a little too high for DELL's double. I feel more comfortable to see AOL reaches DELL market cap than to see DELL will be $160B some + or -. FYI, I am not DELL bear, I still have several thousands of DELL. B.J.

To: TCBinAugusta who wrote (82674)	11/29/1998 3:26:00 PM
From: Chuzzlewit	Respond to of 176387

TCB, repurchasing shares seems to be one of the most misunderstood phenomena in finance. The fact is that repurchasing shares is really only a tax-advantaged form of a DRIP. The result is actually a drop in total capitalized value, and has no effect on shareholder value (other than the difference between capital gains and ordinary income on the "dividend"). It has the effect of increasing P/E if you look at historic earnings divided by current shares o/s. Some of the shareholder excitement is generated by the false illusion that stock repurchases necessarily increases shareholder value. TTFN, CTC