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Strategies & Market Trends : Roger's 1998 Short Picks

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To: scope who wrote (13488)9/5/1998 9:41:00 AM
From: Kip518  Read Replies (2) of 18691
 
scope, feel free to press your interests on banks, however, techs and company stock options is a big story.

From today's Barron's interactive.wsj.com

In Dell's case, there is virtually no book value.

Q: How can that be?

Hickey: All the money they've earned in the last decade, which in theory should be piling up in the form of assets of some sort or another, has gone out the door almost every quarter. Dell has used up to 75% of its cash received every quarter to buy back the most inflated stock in the most inflated stock market in history.

Q: Without increasing book value?

Hickey: Because they've issued so many stock options to executives and
employees. If I were a Dell shareholder, I'd be very unhappy that the assets it earns are being looted.
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