Dell Technologies Inc. Message Board

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Technology Stocks : Dell Technologies Inc.

DELL 127.22

+3.8%

Nov 24 3:59 PM EST

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To: TCBinAugusta who wrote (83811)	12/5/1998 10:06:00 AM
From: Voltaire	Read Replies (2) of 176387

Stock BUY BACKS are a SHAM - When a company gives its insiders more in options and less in salary (a popular maneuver these days), it boosts the stock price, indirectly. By reducing salaries, the company also reduces expenses, which adds to earnings. Higher earnings convince investors to pay higher prices for the stock. THE PROBLEM arises when the recipients of options decide to convert their options into actual shares. This puts more shares into circulation, which lowers earnings per share and makes the stock less attractive. When enough bigwigs sell their shares to reap their rewards, the stock price will fall, undermining the aforementioned buyback. Dellheads will wish the company had sent them a dividend instead of spending the money on internal maneuvering. Wake-up Glee Club! From the porch Voltaire

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