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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (61347)	6/3/1999 3:13:00 PM
From: valueminded	Respond to of 132070

Wayne: I guess i was ambiguous. but I think what I am trying to say is return on equity invested. (to your point, this number will be much higher than return on market capitilization ..unless price to tangible book value <1) Yes I agree that they should justify the buybacks based on market cap (as that is what they are buying back) but my impression is in borrowing the money we say "hey mr banker, if we spent this on increasing output and sell the output at current prices (haha) than the return would be x%" so its a good deal - mr banker please loan us the money) Once we have the money, now lets buy back shares with it resulting in no increase in output (so return on market cap makes no sense) but we will increase the "value of the company" and our shareholders will love us. <g>