Re: Buybacks
The most tax efficient way to return capital to the owners. The law on short-term swing trading by insiders provides for the return of the gain to the company. So if Dell sells puts that expire worthless, the gain is already in the company. Dell sells long-term puts and buys long-term paired calls as I recall, and from the size they are privately placed, not the OCC variety. The other side of these transactions may take positions in standardized options to offset their risk and exposure.
I lurked at Dell.com and noticed that the Inspiron 7500 is base priced with 32 MB RAM, and Dell's prices for adding more are quite fat. If they're holding that price structure, and stretching deliveries, as commented here earlier, they might have expanding margins.
Also, as I left the site, there's a new pop-up window that smartly asks Why, and gives 8 or so multiple choices (want to know shipping and handling, want to shop some more - I went to GigaBuys) and a box to fill in why you are leaving without buying. It seems to me the difficulty getting through for a few days had to do with a conscious effort to upgrade the site and the hardware to handle the increasing volume, all positives that some here thought was negative. |
