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To: jveritas

This is easy to break.

500,000? No problem...

Memo:

I want as much eps incentive as possible.
OK.You’re hired...
Call the treasurer and buy back as many shares off the market as possible.

Bonus time. Eps goes up, no actual change in financial position.

You can even make it deferred, stored value as options at pre buy back market prices.

See how easy that was children?


91 posted on 02/04/2009 12:20:49 PM PST by texmexis best (uency)
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To: texmexis best
Call the treasurer and buy back as many shares off the market as possible. Bonus time. Eps goes up, no actual change in financial position.

You'd have to buy a significant amount of shares to make a significant increase in the eps. If your business has a huge expense on their books due to buying back those shares, thats a dollar-for-dollar cut in the bottom line earnings... effectively shooting yourself in the foot. You can't just increase eps by buying back stock since the act of buying back stock hurts bottom line earnings.
95 posted on 02/04/2009 12:27:28 PM PST by theknuckler_33
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