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Technology Stocks : Oracle Corporation (ORCL)
ORCL 220.61+0.3%3:59 PM EST

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To: brushwud who wrote (17763)1/7/2003 5:32:12 PM
From: hueyone  Read Replies (3) of 19079
 
RE: Dividends.

This will be the irony of ironies when cash rich tech companies start paying out dividends. Many of these companies have sucked massive money out of shareholders to support their excessive stock options programs---in Oracle's case there is 4.8 billion dollars of paid in capital, a full whopping 91.5% of shareholder's equity. Now some of these companies may give a tiny bit of this shareholders' money back to shareholders in the form of a dividend and say "Look at us, we are wonderfully performing companies able to afford to pay a dividend to shareholders". A number of tech investors will then be falling all over themselves to say what great companies these big tech companies are that are paying a dividend, not realizing that many of them are merely returning a minuscule portion of money that shareholders already put into the company. "We will take ten dollars from you and give you back 3 cents---what a deal".

Actually, I hope Oracle and other tech companies do not pay a dividend. It is easier to look at a balance sheet and see what money companies have produced for shareholders when part of it hasn't already been returned in dividends.

Regards, Huey
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