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

To: saju chacko who wrote (4335)	12/13/1998 2:57:00 AM
From: Kirk ©	Respond to of 8218

Splits are meaningless..... Ask Warren Buffett how not splitting BRKS has hurt that stock over the years. Dividends! No WAY! buy back more shares with the cash! Kirk out

To: saju chacko who wrote (4335)	12/13/1998 12:49:00 PM
From: Bill Martin	Read Replies (2) \| Respond to of 8218

My view is: 1) DO NOT increase the dividend. If you follow the dollars, over two thirds of every dollar earned which goes to dividends ends up in the pockets of various federal, state and local tax collectors. I believe that dividends are a terrible way for a technology company to return dollars to share holders. Stock buy backs are better. Buying other technology companies in the industry are even better yet when they can be found at reasonable prices. (The danger is buying them when they're not reasonable -- IBM has done well at making the distinction since Gerstner arrived IMHO). 2) A split is ok -- not good, not bad. If they want to split though, I'd go with something smaller and more frequent. 2:1 or 1.5:1. This doesn't matter much though either way in the general scheme of things. One opinion .... Bill