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Strategies & Market Trends : Value Investing

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To: jeffbas who wrote (7180)5/17/1999 8:11:00 PM
From: cfimx  Read Replies (2) of 75864
 
>>I am not spending my time working up some numbers for a stock I no longer own and I do not care if you get more per share out of paying $55 cash than the 2 1/2 shares of stock I postulated. It is not a conservative business strategy for sure and possibly not even a prudent one, as I pointed out in my Mutual Benefit example.<<

I guess my point, and I'll make this for others, is that it's unlikely that EITHER alternative was the prudent course. Borrowing the purchase price results in a much too leveraged capital structure, while issuing shares would have resulted in a dillution of intrinsic business value for the owners of "new" nh.
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