Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (44405)	1/23/1999 3:47:00 PM
From: SeaViewer	Read Replies (1) \| Respond to of 132070

MB: You are absolutely right. JBL does a smart thing. If you look at IBM' balance sheet, you will find IBM' book value is the same as one year ago. I am now trying to figure out how much revenue JBL needs to offset the dilution problem. If it issues 4-5 million shares, the management needs 10-12 million extra net earning. At 4%-5% net margin, it needs 200-250 million extra revenue a year. Jeff Jeff, I have puts on Jabil, but I have to give them credit for being a smart co. vs. the rest of the tech scammers. They are issuing stock when it is grossly overpriced, and buying in debt which would probably see higher interest rates in the future. This is just the opposite of the slimers who issue debt to buy back stock, putting their shareholders' money at big risk in an attempt to nail down bonuses in the short run.

To: Knighty Tin who wrote (44405)	1/23/1999 7:45:00 PM
From: Earlie	Read Replies (1) \| Respond to of 132070

MB: That is how they used to do it in the old days,....give 'em the paper when it's expensive, and buy it back when it's cheap. Like you say, that doesn't hold the stock price up so that the management can sell their options out. I loved Gerstner's selling out his options to 2003. Confidence in the company's future shown there. (g) The lambs don't worry about such things. Nor do they concern themselves with such trivial matters as IBM's cash cut in half (or more,...I wonder how much of the reported cash results from the $5.0 billion sale of the global data system?) in less than three years, and the debt having risen from $9.0 billion to $30.0 billion in the same period. Best, Earlie