http://stockmarketbeat.com/blog1/2007/02/28/xlnx-xilinx-joins-the-dumb-financing-decision-parade/ Our beat: The stock market. Our job: Beat it. Tue, 03 Jun 2008 15:36:49 -0600 http://wordpress.org/?v=2.8.1 hourly 1 http://stockmarketbeat.com/blog1/2007/02/28/xlnx-xilinx-joins-the-dumb-financing-decision-parade/comment-page-1/#comment-30932 MU: Micron Can’t Take a Hint - Stock Market Beat - Our beat: The stock market. Our job: Beat it. Thu, 17 May 2007 15:19:56 +0000 http://stockmarketbeat.com/blog1/2007/02/28/xlnx-xilinx-joins-the-dumb-financing-decision-parade/#comment-30932 [...] So, in a one-two punch that almost seems designed solely to infuriate me, Micron is using complex convertible securities, which I consider to be financial sleight-of-hand, so they can keep funding the capex levels I already think are too high. Why can’t they take the hint that there are too many memory chips already, and cut their capex by $1.1 billion instead? For more information, see all articles on: Stock Market, MU This article is for entertainment purposes only and reflects the author's opinion. It is not a solicitation or advice to buy or sell any securities mentioned. Always consult a qualified advisor before making investment decisions. [...] [...] So, in a one-two punch that almost seems designed solely to infuriate me, Micron is using complex convertible securities, which I consider to be financial sleight-of-hand, so they can keep funding the capex levels I already think are too high. Why can’t they take the hint that there are too many memory chips already, and cut their capex by $1.1 billion instead? For more information, see all articles on: Stock Market, MU This article is for entertainment purposes only and reflects the author’s opinion. It is not a solicitation or advice to buy or sell any securities mentioned. Always consult a qualified advisor before making investment decisions. [...]

]]> http://stockmarketbeat.com/blog1/2007/02/28/xlnx-xilinx-joins-the-dumb-financing-decision-parade/comment-page-1/#comment-18860 ACN: Accenture’s $1.5 Billion Buyback a Drop in the Bucket - Stock Market Beat - Our beat is the stock market. Our job is to beat it. Fri, 09 Mar 2007 16:15:51 +0000 http://stockmarketbeat.com/blog1/2007/02/28/xlnx-xilinx-joins-the-dumb-financing-decision-parade/#comment-18860 [...] So it would seem the company should be able to afford something more like $2 billion. But even that would cause cash to pile up further on the balance sheet, which already shows a $2.7 billion hoard against virtually no debt. And speaking of debt, maybe they should consider taking some on to recapitalize (use for share repurchases.) It seems like a reasonable value at 9x free cash flow, which by our reckoning values the company as though it will not grow - and the strong cash flow should be sufficient to support a reasonable amount of debt. [...] [...] So it would seem the company should be able to afford something more like $2 billion. But even that would cause cash to pile up further on the balance sheet, which already shows a $2.7 billion hoard against virtually no debt. And speaking of debt, maybe they should consider taking some on to recapitalize (use for share repurchases.) It seems like a reasonable value at 9x free cash flow, which by our reckoning values the company as though it will not grow – and the strong cash flow should be sufficient to support a reasonable amount of debt. [...]

]]> http://stockmarketbeat.com/blog1/2007/02/28/xlnx-xilinx-joins-the-dumb-financing-decision-parade/comment-page-1/#comment-18451 Trent Wed, 07 Mar 2007 22:54:59 +0000 http://stockmarketbeat.com/blog1/2007/02/28/xlnx-xilinx-joins-the-dumb-financing-decision-parade/#comment-18451 Then I must be missing something - wouldn't straight debt provide a larger tax benefit and result in a more permanent share retirement - or is the whole idea not to retire shares? Cause it looks to me like the deals are done specifically to temporarily reduce dilution caused by options. Then I must be missing something – wouldn’t straight debt provide a larger tax benefit and result in a more permanent share retirement – or is the whole idea not to retire shares? Cause it looks to me like the deals are done specifically to temporarily reduce dilution caused by options.

]]> http://stockmarketbeat.com/blog1/2007/02/28/xlnx-xilinx-joins-the-dumb-financing-decision-parade/comment-page-1/#comment-18282 Ted Angel Tue, 06 Mar 2007 16:29:34 +0000 http://stockmarketbeat.com/blog1/2007/02/28/xlnx-xilinx-joins-the-dumb-financing-decision-parade/#comment-18282 William, the number one reason these convertible bond deals are done is specifically for the tax benefit. This latest one by Xilinx will have a tremendous tax benefit and thus be a great benefit to the shareholders. William, the number one reason these convertible bond deals are done is specifically for the tax benefit. This latest one by Xilinx will have a tremendous tax benefit and thus be a great benefit to the shareholders.

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