glenng - 12:19 pm on May 4, 2006 (gmt 0)

IMHO - when a company goes public, it is because they need the capital for expansion purposes. The need for money to buy the equipment was probably known before the release of the IPO. Probably the statement was made to prepare the shareholders and investors that cash would be put into the company, rather than paying out of higher dividends. To an outsider (shareholder or investor) they would see a reduction in the normal cashflow - panic would set in - stock prices drop and then a big sell off of stock.

Someone mentioned that Billy G mentioned that MSN was looking to spend some big cash to compete with Google and expected a 10% reduction in share value - is Google preparing the public for the same thing?

There is a word battle taking place between these 2 giants and sometimes we need to read between the lines and look beyond the technical aspects. Who knows, maybe this is the beginning of the implementation plan for all the new hardware?