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Technology Stocks : Phoenix Technologies (PTEC) -- Ignore unavailable to you. Want to Upgrade?

To: Mark Brophy who wrote (3267)	4/23/1999 6:01:00 AM
From: Fred Fahmy	Read Replies (1) \| Respond to of 3624

Mark, CREAF bought back about 3.5 million shares at the end of 1998. Unfortunately, the shares used in calculating last Q's EPS didn't go down at all YTY despite the buyback for two reasons. First, they can't use the ending number of shares for the quarter, but some type of average (i.e. shares retired in the last quarter don't have full affect of increasing EPS until subsequent quarters. Second, CREAF issued new options to employees which essentially cancelled out much of the first wave of the buyback. I don't think the purpose of the buyback should be to influence the short term price. Ultimately, the idea is to retire as many shares as possible which means getting the most bang for the buck (i.e. buying as many shares as possible as cheaply as possible). The percent of the company which your shares represents goes up every time a share is retired, i.e. you own more of the company. FF