cpu......the worse is over???...or not., page-4

  1. 1,155 Posts.
    the cost of buyback and the cost at 55m + shares and $2.15 is about 120m..the interest cost of that alone is at leat 10m (depensing on where they borrow from)..this has to be paid out of earnings..

    alternativley $120m that could have been used for expansion etc is gone..I believe that this is called opportunity cost by accountants

    needless to say when the buyback ends there will be nothing to hold the price up CPU will own 55m of its own shares and have $120m left to use for anything else
 
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