I quite agree, but a higher stock price allows a company to borrow money
more cheaply; it makes it more difficult to take over, and it's a sign of
confidence.
JOhn
On Sun, 18 Dec 2005 19:53:55 -0000, graywolf <[EMAIL PROTECTED]> wrote:
Buying big chunks of existing stock does not help the company much.
Buying a new issue provides them with working funds. 20%+ of existing
stock looks like the start of a hostile takeover. Of course it could
just be that they see Pentax as a good investment right now.
graywolf
http://www.graywolfphoto.com
http://webpages.charter.net/graywolf
"Idiot Proof" <==> "Expert Proof"
-----------------------------------
Mark Erickson wrote:
Sometimes purchases like this are a good thing. For example, the Texas
Pacific Group, a private investment firm, purchased a large stake in
Ducati
back in 1996. Ducati used the money as working capital and TPG got
them to
tighten up their operation, improve their quality control, and get back
on
their feet.
We're on (or maybe just past) the cusp of a big shift from film to
digital.
Pentax is a player, so maybe these guys see opportunity. Or maybe
they're
hoping to turn a quick buck by selling Pentax to Samsung. We'll see....
--Mark
Joe,
Most corporations that have somebody else buy 20% of their stock start
looking over their shoulders at what the investor has in mind. Are
they buying to force the company to split up or merge with another
corporation? But I know nothing about Japanese corporate culture...
Regards, Bob S.
On 12/17/05, Joseph Tainter <[EMAIL PROTECTED]> wrote:
http://forums.dpreview.com/forums/read.asp?forum=1036&message=16312496
Maybe someone who knows more about corporate stuff can than I do can
tell us what this means.
Joe
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