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Technology Stocks : Dell Technologies Inc.
DELL 133.78-0.1%3:59 PM EST

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To: Lucretius who wrote (42686)5/17/1998 2:40:00 PM
From: Chuzzlewit  Read Replies (1) of 176387
 
Lucretius, I agreed with your previous post regarding the dangers of stock options, but this time you're way off base. The way to analyze it is to look at the bottom line (not per share data). Clearly, Dell's bottom line is growing at an exceedingly rapid rate, and that has nothing to do with stock buy-backs. Contrast this to IBM's bottom line. When you look at earning on a per share basis you only see the gross effect and miss the components. That's why you're wrong in this case.

The best way (IMO) to view a stock buy-back is as a dividend to shareholders that converts to capital gains, and thus is subject to a lower tax rate.

I do want to thank you for bringing the options issue to the attention of the thread. A similar article appeared in the NY Times a couple of months ago.

TTFN from that backward looking ratio reading pussycat,

Chuzzy
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