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Old 11-20-2007, 05:35 PM
Jimbo Jimbo is offline
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Join Date: Sep 2002
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Default Re: Krishan\'s Leverage EV Case

This might be true if they kept their cash in a mattress somewhere but not if it is drawing interest. Also the cash can be used as a hammer to "threaten" to rebuy their stock which normally results in an immediate short term bounce in their stock price whehther they actually buy any stock back or not. Stocks without this cash position have neither of these advantages.

Jimbo
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