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

To: Chuzzlewit who wrote (147507)	11/16/1999 12:38:00 PM
From: Sr K	Read Replies (1) \| Respond to of 176387

Thanks. I can't recreate my "math" but I had gotten just under $.1750 per share. Using diluted shares of 2723 or 2724 there is is only a $.00178 adjustment, so you are right.

To: Chuzzlewit who wrote (147507)	11/16/1999 4:14:00 PM
From: jim kelley	Read Replies (2) \| Respond to of 176387

CTC, Re: "But the fact remains that it is a terrible distortion of the purpose of GAAP accounting. By sweeping acquisition costs under the rug you get to maintain abnormally high earnings and also get to boost your ROIC since the cost of the acquisition is eliminated from the capital base. Pretty neat trick!" DELL's earnings were adjusted for the purchase of ConvergeNet. I believe the charge was 7 cents per share. So I fail to see how this is sweeping the charges under the rug. Since DELL apparently paid for ConvergeNet with stock. It seems to me that the expensing of the R&D simply decreases their taxes by .3 X 177 M dollars. Meanwhile, the stock is diluted somewhat by the acquisition and their cash position is enhanced by about 53 M. Regards, Jim Kelley