Dell Technologies Inc. Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc.

DELL 126.01

+4.2%

Feb 10 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jim Patterson who wrote (41542)	5/12/1998 1:12:00 PM
From: Chuzzlewit	Read Replies (1) of 176388

Jim, I think you still don't understand the purpose of stock buybacks. These are dividends, and they work especially well when management believes the stock is undervalued. Look at the dividend aspect. When shares are retired into treasury the effect is to increase EPS, and hence to increase the price of the shares. But this price increase is not subject to taxation as a typical dividend would be -- it is taxed only when the security is sold. And when it is taxed, it is taxed at the capital gains rate rather than the ordinary income tax rate. The other point on which you constantly err is that Dell has been an historically debt-free company. This is not true. Historically they have carried debt. In FY1997 they retired $95MM in 11% bonds. I suggest you check the 10-K on this issue. TTFN, CTC

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next