Replies to post #247848 on Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

The question is "which" shareholders, with about $6 B in money raised for stock over the last 20 years (most of it in secondaries, not the initial IPO), and a net tangible BV of $6 B, no "value" was added to the OPM, The fact that the company has paid another $6 B to buy back their own shares at excessive prices does not change that picture. And while typing this (and the numbers are from memory, too busy with MRVL right now), took another half bucker from MRVL here at $40.77, completing the tetrabucker and change. T is negative, but the stock is still climbing, now printing $40.87...no system is perfect...

[ardent jd]

Hey there, Culmus...hope you're doing well.

Good points. We agree.

One small nitpick, though. Yes, a larger stake in the same sized pie is worth more, but haven't you forgotten about the dividends that would otherwise have been paid? If those dividends are invested in another stock that does equally well as the original stock (or indeed in the original stock itself), an investor would have equal wealth under both scenarios.

Regards,
jd