Compaq Message Board - Msg: 2895695

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Technology Stocks : Compaq

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To: Brad Zelnick who wrote (10368)	12/6/1997 1:24:00 PM
From: hpeace	Read Replies (1) of 97611

URGENT ..CPA NEEDED..PLEASE READ THIS AND EXPLAIN I just read the dell 10q.. They have been buying their stk back buy selling naked puts and buying calls. Selling naked puts on dell when stk was low 70's in october woould make a fortune now I think I know one reason for dells' rise in stk price. The 10Q indicated that made allot of money of expiring put warrnts.. that's not the question or the issue. I seems that they have purchased calls and have the right to buy 27 million shares back at avg price of $74/share. I don't think they gambled and paid allot for those calls. So, their is a plus 1/2 billion dollars there minus whatever they paid for the right to make that purchase. WWWOOOOOOOOOOOOOOOOWWWWW. Can a CPA please explain this..I understand options but I'm foggy on how dell reports any profit on this if they even can ???????????????????????????????????????????? I do see dell's cash down to 222 million.that seems low.. liability for put options is 51 million they have 1.4 billion of marketable securties is there a way to find out what they paid for those call options or is that in the avg. price to buy somehow since dell's cash is really low

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