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To: Chuzzlewit who wrote (102673)	2/18/1999 3:30:00 PM
From: PAL	Respond to of 176387

Paul: I completely agree with you. That is why I stated that share buy back is virtual dividend. While dividend is a double taxation at ordinary income rate for recipient, share buy back has better tax advantages. The company can control the number of shares it wants to buy back. As for dividend, the rate is a floor rate. If at one point the company wants to use the money for expansions/growth and cut the dividend rate, we can be assured that the stock price will tumble. This is as you said: Finance 101. Therefore, I completely disagree with Michael Burke. Regards Paul.