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To: Uncle Frank who wrote (718)1/1/1999 1:42:00 PM
From: Cosmo Daisey  Respond to of 41369
 
UF,
"""Aren't stock buy backs, a common practice among the leading tech companies, an exact equivalent?
Dividends are just a legacy from an earlier world of investing, and imo, aren't a sign of limited management
imagination."""

Stock buy backs aren't a form of dividend, its money laundering.
The tech's give liberal stock bonuses and options to their officers and key employees who sell them immediately. The company announces a buy back and gives the stock away again. If they paid the employees the same amount in cash then the stockholders would be bitching about
how much money they were paying in salaries. The added bonus to shareholders is the announcment sometimes moves the stock. IBM has been doing it for years but with IBM they say the buyback is for that purpose.
cd



To: Uncle Frank who wrote (718)1/1/1999 6:29:00 PM
From: 1SFG  Respond to of 41369
 
I agree with you. Some people actually invest for income (haven't figured out why yet) and a nice steady, increasing dividend is what they look for. When management doesn't know what to do with the money, I think their company is heading for the trash heap.