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Technology Stocks : Dell Technologies Inc.

DELL 117.16

-1.7%

3:59 PM EST

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To: kemble s. matter who wrote (174663)	4/8/2005 4:17:15 PM
From: rkral	Read Replies (2) of 176388

Kemble, re "But I also assume we're talking about that tug of war again between options and share repurchases?" Close. I was referring to the net effect of the right hand putting earnings dollars into our pockets, while the left hand is taking share repurchase dollars right back out ... in order to offset option dilution. For Dell's most recent 4 fiscal years, stockholders' equity has grown only $863MM from $5,622MM to $6,485MM ... while reporting a cash inflow from earnings of $9,056MM. So it looks like stockholders' retained $863MM (10%) of the earnings and employees received $8,193MM (90%). re "I'd surely hate to lose some of the outstanding and loyal leaders at DELL that have started with this company and are still in their 40's...Frankly, I don't care how rich they get..." With 90% of the earnings going to employees, they should indeed get rich. After accounting for the decreased shares outstanding (as Amy J noted), that might only be 80% ... but still make the employees much richer than the stockholers. Ron

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