Replacing equity with debt never seems a very good idea for a high technology company but shareholders don’t seem to mind provided that it underpins the share price short term, and DEC is to buy in 5m more of its own shares, 4.1% of the total, arguing that the current market value of Digital stock does not reflect the underlying strengths of the company – its customers, products and the markets it serves, as well as its strong financial position; DEC has already bought in 18m of its shares at a cost of $2,100m over the past two or three years.
