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Technology Stocks : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: kvogel who wrote (27457)	12/4/1998 10:41:00 AM
From: Joe Griffin	Read Replies (1) \| Respond to of 36349

kvogel... this share buyback presents a real dilemma for PAIR management, because on the one hand they don't want the stock to fall too low... which means they need to keep buying, but, on the otherhand if they wait for it to drop VERY low (whatever that may be) they can pick up the shares at a lower cost. They could buy back 7 M shares at $7 for $49 Million or 7M shares at $5 for $35 Million.... a savings of $14 Million. Which would you do? My experience is that management usually pays more for their stock than if they would have waited a few days longer. It falls anyway. The prop up does not work in the long run! Aside 200,000 share trade at $7 at 10:23.