This hayden_cole guy is the guy who was insulting everyone who was "too stupid" back in January to understand that GME's stock buyback would quote "devalue" GME. Now he's back. This guy is clueless and just here to aggravate. Just FYI.
But jmox you are correct. Here's what hayden.cole stated on 1/28/10. Don't let him\her fool you. He's half New Zealand sheep\half human so I'll give it (hayden.cole) a break. It doesn't know the difference between free cash and valuation via earnings:
"A p/e multiple is not the only measure of a company's value you know - if they use $300 mil to buyback shares and then they retire them, sure it raise the p/e but that $300 mil belongs to equity investors to begin with - it should already be factored in to valuations. It's not like they magically created 300 mil out of thin air."
not really that interested, but you did make a point about cash cancels out earnings before, so I believe you need to re-read your security analysis book and distinguish between balance sheet items and recurring income statement items.
but all things aren't equal, there's less cash and there are less shares, so....I don't see the point of making the obvious point that having 900 million in cash is better than having 600 million in cash, all things being equal...
"every one of them has some hidden meaning that we know you did not originally intend."
Who is 'we'? Your imaginary friend? Because everyone else on this board I suspect thinks you are an immature moron. Does 'all other things being equal' have some other mysterious definition where you come from?
A word of advice - be man enough to admit when you're wrong and you may find you don't have to plough through life so uptight all the time. You might find it liberating.
No one can comprehend your statements you think probably because you yourself think every one of them has some hidden meaning that we know you did not originally intend. You make open ended statements so you can spin it anyway to suit you is what I'm hearing you say. I bet you have no friends left with your pompous attitude. Your word here is garbage.
Read that bit you copied again. It says 'all other things being equal'. Do you understand what 'all other things being equal' means? It means there are two scenarios - one is GME, one is GME minus 300 million bucks. Not GME minus 300 million bucks but 300 million bucks less float. It's all there in the post which you copied and pasted, and yet you still can't figure it out. I can't help you if you are struggling with basic comprehension man.