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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: accountclosed who wrote (12039)	11/30/1998 6:02:00 PM
From: MythMan	Respond to of 86076

In past cos issued debt to build plants? Overcapacity now says no need for that sort non value added stuff. Debt issued to buy back stock only it seems. Cos refinancing LT debt at lower rates but I sense no new debt ex stock buy back related. You right, stock is the way to go at outlandish prices.

To: accountclosed who wrote (12039)	11/30/1998 6:19:00 PM
From: IceShark	Respond to of 86076

I guess I haven't been paying that much attention to your and tip's discussion. I was looking at the demand side of the equation. Naw you are right, issue bloated equity paper if you have a clue how to spend it effectively. But I think your premise is a bit off vis-a-vis bonds. No one is rushing to buy anything really new, as in expand. Sure they are picking up existing stuff with stock and a bit of left over cash. The bond/borrowing problem hasn't been here all that long and stock is so much more attractive. Hell, all you have to do is take a few one time write offs and declare the deal accretive to earnings. -g- So, we agree that not too many folks are printing bonds, and at this point I don't think they could for the right price. Simply a disconnect between equities and risk debt. Regards, Ice