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Technology Stocks : Dell Technologies Inc.
DELL 133.35+0.1%Nov 28 9:30 AM EST

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To: broken_cookie who wrote (52178)7/18/1998 4:34:00 PM
From: Chuzzlewit  Read Replies (4) of 176387
 
Richard, this is a hot button with me. The accounting rules concerning share repurchases stink!

A major portion (although not all) of Dell's stock buyback is used to support employee stock options. There is a very small decrease in the number of shares outstanding compared to the number of new shares issued as part of incentive programs. The situation is further muddied by Dell's use of options to support these transactions. What these programs actually cost shareholders is very difficult to say. Regardless of how these transactions are carried out, I think the details need to be explicitly included as part of the P/L. After all, this is employee compensation and I think shareholders need to know exactly what it is costing them.

I am so upset with these programs that I now vote against all of them as a matter of principal. When companies let me know exactly what it is costing me (because the share price is where the cost is borne) I will revisit the issue.

TTFN,
CTC
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