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Technology Stocks : Dell Technologies Inc.
DELL 122.55+4.4%Nov 21 3:59 PM EST

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To: SecularBull who wrote (55523)7/31/1998 2:40:00 PM
From: Jim Patterson  Read Replies (4) of 176387
 
LoD,
When I refinance my home,
I will not add to the Debt.

DELL on the other hand, Issued Debt, that they will have to pay interest on and promptly spent it to buy back stock.
Now here is what I see in that.
DELL will pay interest on $324 Million. They used that money to buy back stock.
What does dell get for buying back the stock ?
Nothing but a higher stock price for Mikey.
If the stock price goes below the price they paid for it, and the comapny finds it in a position where it needs new cash, then they could re issue the stock, taking a loss, and having to pay interest on the loss they took.
Or they could issue more debt. But because they already have some debt, they are likely to pay a higher interest rant than if they were starting at square one.

Jim
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