Xiaofan Chen wrote:

> I think many companies should go private in the current situation.

Many are.  Look for buy-backs bolstering stock prices.  And also look 
for buy-backs where executives and "future owners" want more control of 
the company than they have while public.  They buy while the stock 
market is down, just like any other buyer, but the stock "disappears" 
and isn't available on the market, making it scarce (so the price can go 
up for a time)...

The buyers of buy-backs into the company are hedging their bets and 
pulling back on how "public" they are.

If the market goes up, they'll stop buying and ride it up.  If the 
market continues down and the execs and people buying the stock 
privately agree the company is good, the stock will cease to exist and 
the company goes private.

It's complex, because if they let the value fall too far in the process 
(people think they're going private and won't make money in the stock), 
they become a target for a leveraged buy-out by a competitor.

Crazy (but interesting) games CFO's play.

Often times the stockholders stand to make a nice profit if they buy at 
the lows prior to buybacks.

And buybacks have to be pre-authorized, but aren't always taken.  That's 
the risk you run playing the buy-back game...

Some of THE BEST companies in the world are on buy-back sprees right 
now.  Look for it.  It's interesting.  (I'm not enough of a risk-taker 
to play that game, but it helps in determining the long-term risk of 
owning any particular company's paper.)

Nate
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