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Strategies & Market Trends : Value Investing

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To: TimbaBear who wrote (15051)	8/4/2002 3:16:09 PM
From: j g cordes	Read Replies (1) of 78525

Jurgis or Timba.. I haven't thought this through but IF Dell intended to buy back shares or even if they suddenly decided to buy back shares.. could that share buyback satisfy the put selling position AND retire shares at the same time? If so it would be rather brilliant.. because they took some money in selling the puts, then buy back the shares (which is good.. fewer shares in float) at a lower price. Either way they make out ok.. if the stock had gone up they pocket the put sales, when the stock goes down they cover by buying shares out of circulation.. and who's to say they can't sell more puts now to cover buying previous obligations. I have a suspicion that with HP's problems with CPQ having caused lots of channel problems.. they gained significant market share. In addition, they've been selling EMC storage systems like hot cakes.. now they're going into the printer market with momentum that HP's losing and looking ahead at PDA opportunities. Seems to me their put plays shouldn't be a problem. JIm

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