Dell Technologies Inc. Message Board

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Technology Stocks : Dell Technologies Inc.

DELL 119.68

-0.6%

Jan 13 3:59 PM EST

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To: BGR who wrote (80528)	11/16/1998 11:50:00 AM
From: Chuzzlewit	Read Replies (3) of 176387

Apratim, you said: Given that DELL's net income was less than 0.6 billion this quarter and they purchased 18 million shares back this quarter, the average purchasing price of shares must have been less than 28-29 and possibly as low as 20 (assuming some of the income was reinvested otherwise). This is way below market price for shares (which stayed in the range 40-69) and was probably made possible via use of derivatives as Jim had earlier pointed out. I apologize if this has been previously published by someone else, but I think your comments incorrect. There is no connection between reported earnings and the price paid for repurchasing shares, so you cannot infer anything about the prices paid for stock based on earnings. Similarly, "profits" derived from selling puts are not included in income statements. TTFN, CTC

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