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To: Woody_Nickels who wrote (6091)5/17/1999 1:28:00 PM
From: Joe E.  Read Replies (1) | Respond to of 14451
 
< <Companies buyback shares for two reasons...
< 1) To prop up stock price
< 2) Because they don't have a better investment option
< Can anyone think of another reason to buy back shares?>

1. Sometimes insiders with substantial ownership direct the company to buy back shares to increase their own percentage ownership.
2. Some companies treat outside stockholders like bondholders, as providers of capital, not as co-owners. They will buy back shares when they think the shares are cheap, planning to reissue them when the shares are higher.

These are not textbook motivations, but real nonetheless.
IMHO



To: Woody_Nickels who wrote (6091)5/17/1999 3:38:00 PM
From: Doug Skrypek  Read Replies (1) | Respond to of 14451
 
From the Wall Street Journal 5/17/99:

"Silicon Graphics Inc., Mountain View, Calif. said it plans a public offering to sell as many as six million common shares of its holdings in MIPS Technologies Inc. at $34.50 each."

"Proceeds will be used to buy back its own shares and to retire debt, SGI said."


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