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To: Fred Fahmy who wrote (12994)12/4/1998 11:30:00 AM
From: Art Courville  Read Replies (1) | Respond to of 13925
 
What the buyback really does is increase leverage, not worth or value. Remember, even though each share represents a higher percentage ownership, the company is paying for the shares, so the increased percentage is offset by a reduction in assets.

>>Buybacks make the shares you own inherently worth more since
>>there are fewer. Each shares represents more of the company
>>as the total number of shares outstanding decreases.