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Technology Stocks : Dell Technologies Inc.

DELL 133.49

+2.3%

12:44 PM EST

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To: OLDTRADER who wrote (169668)	5/20/2002 3:55:38 PM
From: mepci	Read Replies (2) of 176387

OT: Here is a first draft of a letter I want to send to the kid. I will welcome inputs from this board on the draft. Dear Mr. Dell, I am a contributor to the Dell board on SiliconInvestor. All most all of us are enthusiastic supporters of Dell the company and Dell the CEO. We do feel an inequity developed in sharing the fruits of success of Dell the company. This inequity is in terms of Stockholder's equity Vs money made by the management from Dell and subsequent stock sales. This inequity and the mistakes made in the derivative trading in the last two years will have a tendency to drag our favorite stock. I/We have a suggestion. This suggestion is based on the fact current accounting practices keep stock option exercises through treasury stock purchases. This suggestion has two action items: 1. Mark all remaining options to the lowest price of the stock this year. This may increase the price of the options exercises to the management by $5-$15. But the positive effect of this in the market will reduce most of this loss. 2. Please treat the retained earnings as stockholders property. Allow only a maximum of percentage (say 25%) to be available for issuing stock options. Tom Merideth had a great idea when he started using derivatives. Apparently somebody did not think through this plan. Please limit these risks to a percentage of retained earnings. You may want to consider the usage of derivatives only for the stock option coverage portion of the retained earnings. It does not make sense for a great company like yours that is profitable to lose some of the stockholders equity in any given profitable year. I and my fellow signers of this memo will be available for you for any clarifications either on this board or privately. If you implement any part of this suggestion, you will be making accounting history. Dell and all the Dell stakeholders will prosper more than if you don't implement this suggestion. I wish good luck to all delheads.

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