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Technology Stocks : Dell Technologies Inc.
DELL 118.75-0.8%Jan 14 3:59 PM EST

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To: BGR who wrote (80843)11/17/1998 12:43:00 AM
From: Chuzzlewit  Read Replies (1) of 176387
 
Apratim, you are making a lot of unwarranted assumptions. For example, cash is derived from non-cash charges such as depreciation and amortization, and cash is derived from the sale of exercised options. One fact ought to be clear: the earnings as reported was less than the increase in equity by some $36MM. Nevertheless, when calculating eps companies use earnings from the income statements, not the change in the retained earnings account (which would be decreased by stock repurchases and reissuance).

The reason that a company trading in its own stock is unethical is that it is privy to information which it's owners (we, the shareholders) are not. That could have the effect of putting us in competition with our own company. IMO the only legitimate reason for buying or selling your own equity is to meet the capital needs of the company. This is the rationale behind not including the results of equity transactions on the income statement.

TTFN,
CTC
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