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Technology Stocks : Dell Technologies Inc.

DELL 114.54

-2.3%

1:54 PM EST

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To: Mick Mørmøny who wrote (170239)	7/19/2002 10:21:43 AM
From: mepci	Read Replies (2) of 176387

That is not the whole story either. If you buy Dell at $44 and sell at $4 to management, you are taking of $40 for each of these shares from SE. If you this with 300m shares that is $12B hit, which is more than the current SE. So if you bring SE to zero, you still have to come up with over $7B from future earnings. I hope somebody pulls out the current unexpired option spread. It is important stock option costs to corporations are marked to market. That is if Dell is at $26, average executable(below market options) are at $6 and these are about 60M shares, the current SE will look like this: Treasury stock: $2.4M at app. $40 or 60M shares. Cash to Dell after exercise: $360M. SE value after this cash is added: less than $5B. Loss to company $2B: double that of the earnings last year. What reward do you want to give the management after such a huge loss to shareholders? It is sad that nobody is paying attention to this gimmick.

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