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Politics : Ask Michael Burke

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To: Mike M2 who wrote (60754)5/26/1999 2:12:00 PM
From: BGR  Read Replies (3) of 132070
 
Mike,

First, DELL made about 4 BB total (from memory and hence approx. over all years) from selling options. They made about the same amount of money by selling PCs in last year alone. So it is not true that they made more money speculating than by selling PCs. (I will check the exact numbers and confirm.)

Second, cash from options do not show up in earnings, it goes to cash and other securities section in the balance sheet. So, better than expected earnings has nothing to do speculating in securities (better than expected EPS may, if the cash is deployed in share buybacks).

-BGR.
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