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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Ausdauer who wrote (5467)	4/16/1999 5:37:00 PM
From: Art Bechhoefer	Respond to of 60323

Aus, if I had been the CFO last fall, I would have wanted to hold onto every cent in cash in order to make sure the recently opened plants overseas were functioning properly, or to cover some other unanticipated contingencies. Companies rarely trade their own shares, and certainly not to stabilize share prices. Sometimes companies will buy their own shares in order to retain a reserve in their treasury for purposes of issuing them to officers who are exercising options. Thus, a company could issue stock options by buying shares on the market at low prices or by issuing shares already held in reserve. Normally, they will issue shares already held in reserve. Note that the balance sheets will show both the number of shares authorized and the number outstanding. Also, issuing additional shares resulting from a new registration or a previous shelf registration, while it may dilute earnings, may also be a low cost way to finance expansion. Art