SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Applied Materials
AMAT 223.95+1.7%Nov 21 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Ian@SI who wrote (30516)5/24/1999 12:33:00 AM
From: Sun Tzu  Read Replies (1) of 70976
 
You are correct in describing DELL's strategy (a.k.a. synthetic buy back) and the article was certainly wrong if it said that the proceeds from derivative transactions made it directly into the earnings. However, by reducing the number of outstanding shares, these transactions did raise the reported EPS, the magnitude of which is unknown to me without studying the numbers. BTW, last Fall I wrote a piece in which I described the strategy and how some company's were having their head handed to them since their calls were worthless and the puts were in the money. Lucky for them, the market recovered rapidly.

ST
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News