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

To: Mike Van Winkle who wrote (158700)	7/22/2000 10:02:21 AM
From: Gabriel008	Read Replies (1) \| Respond to of 176387

Mike, DELL has been particularly effective in the investment side of the business. Selling puts and buying calls was originally designed to offset the employee stock option plan but because of the company's phenomenal earnings growth over the past few years DELL actually generated capital gains that exceeded operating profits. I believe Fortune magazine wrote a piece on this issue a couple of years ago. With respect to the article I think the reporter made a mistake unless there have been recent changes in accounting rules. Regards, Gabriel

To: Mike Van Winkle who wrote (158700)	7/23/2000 1:43:35 PM
From: mepci	Respond to of 176387

Re.: The earnings per share (EPS) estimate is about 21 cents, without factoring investment gains. Any major gains are expected in gross margins rather than top-line results. Top-line results: operating income. They are talking about .21 operating income. Dell grouped all other income including the lease income, and investment income into the $125M gross income before taxes. That is a big group. I wish they broke it down by category. anyway that constitutes almost .05, but after income taxes they are showing .02, So actual operating income after taxes last quarter was .17, and other income was .92. So the expectation is .21+.02, even though the whisper no. is still kept at .21. So the shadow whisper is .23 including investment income. I doubt whether it will be .23+.2to.04. I am planning on 56 immediate high, and the rest is upto 3q.