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To: Bill Shepherd who wrote (4467)	4/12/1999 9:35:00 PM
From: Investor2	Respond to of 15132

Re: "BUT, when the company executes the stock buyback (to gather shares for the employees) wouldn't that take real cash?? If so, that would be reflected in operating earnings." My guess is that 1) yes, it takes real cash, and 2) no, it wouldn't be reflected in operating earnings. How did I do, Pete? Best wishes, I2

To: Bill Shepherd who wrote (4467)	4/13/1999 11:24:00 AM
From: Sun Tzu	Read Replies (1) \| Respond to of 15132

I believe our friend, Mr. I2 has answered your question. The buy back would effect the cash flow statement but not the operating earnings since a buy back is not considered an operating cost (though in many cases it should be). The shift to focus on operating EPS instead of actual EPS has been one of the thickest wools that has ever been pulled over the public's eyes. After all, if these "one time" charges keep happening all the time, then how extra ordinary are they? There have been a number of studies that point out the huge increase in the number and size of these so called one time charges, but I don't have an online reference to them handy. regards, Sun Tzu