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Technology Stocks : DELL Bear Thread
DELL 117.44-1.6%3:59 PM EST

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To: rudedog who wrote (855)5/26/1998 5:30:00 AM
From: Bilow  Read Replies (3) of 2578
 
I looked up those figures for DELL's option expenses:

Most recent year's earnings reduced from $1.28 to $1.19
per share when the fair value of option grants is expensed.

This is a relatively small amount for high tech.

As a comparison, MSFT's earnings would be reduced
from $2.63 to $2.32, somewhat higher.

The companies that really get their earnings slaughtered
when options are taken into account are the ones that
are just barely profitable. The thing to look at might be
the ratio of labor costs to earnings...

-- Carl
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