On Fri, 8 Aug 2008 09:34:13 -0500, Anton Britz <[EMAIL PROTECTED]> wrote:
>Just to get all these "Wandering minds" on to something more productive : > >How do you think IBM keeps their financial results so "rosy" ? > >All the other vendors have annouced "buy backs" ex. Dell/Sun etc but IBM still >announced fantastic results. > >Something smells fishy some where.. > What's fishy about this? A buy back is done when (1) a company's management believes that their stock is underpriced (2) the company has excess cash or can access cheap credit (3) The company believes that the best use of the cash is to invest in their own stock (as opposed to acquisitions, R&D, joint ventures, or any other posibility). A buy back is generally not a sign that the company is in financial trouble, as they must have access to cash to do the buy back. Nor is a decision to do a buy back a sign of financial trouble, as the management may not believe their stock is underpriced or they may have a better use for their money. ---------------------------------------------------------------------- For IBM-MAIN subscribe / signoff / archive access instructions, send email to [EMAIL PROTECTED] with the message: GET IBM-MAIN INFO Search the archives at http://bama.ua.edu/archives/ibm-main.html
