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

To: Lee who wrote (147532)	11/16/1999 8:14:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Thanks Lee, But note this part of what Greenspan said: In general, if the trend of expensed items that should be capitalized is rising faster than reported earnings, switching to capitalizing these items will almost always accelerate the growth in earnings. The reverse, of course, is also true. While what he said is strictly true, we are really talking about two different issues. Greenspan was talking about software embedded in capital equipment and in-house R&D. I am talking about IPR&D expensed as the result of an acquisition. Most analysts ignore the one time charges from expensing IPR&D in acquisitions, and hence the costs magically disappear. Neat trick dontcha think?. TTFN, CTC

To: Lee who wrote (147532)	11/16/1999 9:15:00 PM
From: Mike Van Winkle	Read Replies (1) \| Respond to of 176387

Lee re: Greenspan comment, "Indeed, there is even an argument for capitalizing new ideas, such as different ways of organizing production, that enhance the value of a firm without any associated outlays." This is where Dell gets its competitive production cost advantage, through process engineering improvements. Completely integrating the net into Dell's processes is frequently mentioned by MD. So does this mean that Dell's earnings are understated? Mr. Greenspan does seem to understand today's business revolution. Cheers Mike