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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?


To: safe_trade who wrote (133248)6/17/1999 3:33:00 PM
From: richard w allgaier  Respond to of 176387
 
Every time I've ever seen the result of increasing shares, short of stock splits, has the effect(dilution) of reducing the share price across the board for a significant number of time. That frequently happens even when the stock splits. It may however give the company more working power w/ respect to acquisitions using shares for purchases.

Rick



To: safe_trade who wrote (133248)6/17/1999 3:47:00 PM
From: JRI  Read Replies (2) | Respond to of 176387
 
Could allow for another 2-for-1 split,or create shares (currency) for an acquisition.<EOM>



To: safe_trade who wrote (133248)6/17/1999 5:01:00 PM
From: Chuzzlewit  Respond to of 176387
 
Safe trade, it has no effect whatsoever other than it allows the company to issue more shares.

The ultimate outcome depends entirely on their use. Those shares can be used to effect a stock split, may be sold to the public to raise additional capital or may be used as currency for a takeover.
Given the price of the stock I would rule out a split at this time. And considering the strong cash position it makes no sense for the company to use the shares to raise additional cash.

Considering the flexible number of potential uses to which those shares may be put, it makes little sense to vote against such a proposal.

TTFN,
CTC