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Technology Stocks : Dell Technologies Inc.
DELL 146.68-1.6%Nov 7 3:59 PM EST

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To: Richard Tsang who wrote (87034)12/27/1998 9:27:00 AM
From: Sig  Read Replies (2) of 176387
 
Re Dell options
Chuzz has discussed Dell options many time here. My own computations (very rough) showed that that Dell made about $1 Bill(which does not show up in earnings)thru the sale of puts and the purchase of calls last year. This is the present value of stock added to the treasury minus the cost, and is available to the stockholders thru stocks splits or to the employees when and if their options mature and can be exercised.
Every shareholder can take advantage of options. I have many
calls on Dell stock purchased at a low price, and many here like Don
not only buy calls but have sold puts which have or will expire worthless.
As last reported months ago, Dell has bought back 40mm shares
at a price of around $28 ?? a share thru long term instruments and
still had authority to buy another 100mm.
So whatever benefits accrue from Dell purchasing its own stock apply both to employees to shareholders.
And a great number of other companies have recently begun stock repurchase plans because they consider their stock to be undervalued. Sig

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