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

To: Mick Mørmøny who wrote (161917)	10/8/2000 10:00:47 AM
From: Sr K	Read Replies (1) \| Respond to of 176387

For Dell, it's only a mini version of the convertible "exploding" preferred that quintimated some companies -- because Dell can settle with cash or shares, and they are minimally leveraged. At current prices they might decide to issue 200 to 214 m more shares which would be less than an 8% dilution (based on my estimate of 2725 diluted shares currently). I believe current SEC rules do not require such potential shares to be included in computing "Diluted shares", and if Dell or Microsoft or others take these hits, they are non-operating hits to the balance sheet. But, they would then lead to a change in accounting rules. Analysts have to consider them significant, but again, for Dell it is manageable because they can settle in stock.