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Non-Tech : Raptor's Den

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To: Lizzie Tudor who wrote (4067)10/2/2002 4:40:24 PM
From: mishedlo  Read Replies (1) of 10157
 
I do believe dell will reach his old highs

This is absurd.
Dell will NEVER reach old highs.
In gact DELL should fall to 10 or below.

DELL is in DEEP shit over thousands of puts that ist sold at strike 40. At 25 or so it stands to lose $1B if memory serves me correctly. Some of those puts will be coming do.

What will a $1B hit do to DELLs bottom line. If selling picks up the value of those puts and the loss to DELL will make it worse, DELL is desperately trying to prop itself back up. At $10 DELL might take a $2B hit (I forget the exact #). Even if dell did not have this problem DELL makes nothing. NOTHING after stock options to employees are taken into consideration.

What is a company worth that has all the market share it can steal, but not make a dime, and has $1-2B in liabilities on a PUT play ticking time bomb?

M
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