Ask Michael Burke Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Thomas M. who wrote (71064)	11/28/1999 2:04:00 PM
From: Chuzzlewit	Read Replies (2) of 132070

Try reading this for the explanation: Message 12125579 Before you dismiss me as arrogant, consider that Skeeter first talked about issuing stock (false), then back-tracked and talked about $500MM in debt (true), but then assumed that the purpose was to meet some kind of cash crunch (arrant speculation), and never took the time to investigate the stated purpose of the debt. Do you think it is inane to speak factually? And do you think it's arrogant to call specious thinking to task. So's who's assuming what? Now to your comment: The buybacks are not significantly reducing the share count. They are simply financing the issuance of new shares to insiders. This is not "free cash flow". This is paying one's employees, a basic cost of business. Wrong again. The issuance of shares through stock option plans transfers cash from shareholders to employees. It does not require stock repurchases, which, in any case, requires the outlay of cash. In fact, Dell finances much of the issuance of new shares through the sale of put options. Stock repurchases are no more free cash flow items than dividends.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next