Simple answer to your question:  because the shares bought back should become worth a lot more later than when are when bought.  Kinda the reason we all invest in stocks.  And if the company can make more with that investment than in any other endeavor, they'd be foolish not to.

IMO if there was a need to convert those acquired shares into cash, I would think it would be done in a prudent fashion on the open market.  But the point is that they would have greater value, giving the company greater value.

It's interesting that you say "There are approx 385 million outstanding (a ton btw)." implying that's way too many, and then ask "why buy more?".  Yup, they've got 500M authorized.  So what? They are not all O/S or part of the float.  But shares bought back reduce the float (shares actively traded).

Just "selling my continuing argument" for aggressive share buy-backs.....and all JMHOs.  I cantwait for 'em to do it, and like you cantwait for 4/9/08 to roll around!

SGE