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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (74656)	1/27/2000 12:27:00 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Wayne, What they are doing is called buying synthetic stock. Buying a call and selling a put while holding cash is exactly the same thing as buying stock. But they did this before and thought that nobody would notice that it is them buying stock since it was done away from the NAZ. This technique makes the MMs net short the stock, so they have to go to the NAZ and buy shares to hedge. so, it looks like somebody other than Dell has confidence in the confidence men. <g> So, they are just using the shareholders' cash horde to soothe management's bruised egos as they try to prop up the swan with the arrow through its guts. <g>

To: Freedom Fighter who wrote (74656)	1/27/2000 1:56:00 PM
From: Eggolas Moria	Read Replies (2) \| Respond to of 132070

Didn't we go over this stuff a year ago? [I hate being so old . . . no memory] I seem to recall that Dell had once bought calls and sold puts on their stock as part of a program to lock in a low price for buying back needed shares to offset stock options, but that the sale of puts got the SEC somewhat concerned. Didn't they voluntarily abandon that part of the practice or is my memory swiss cheese? Buying calls: Well, if you continue to expect the stock to appreciate, it's a cheap insurance policy against having to repurchase shares at higher prices. If the stock declines more than the cost of the premium, you're still ahead of the game.