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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: John who wrote (66154)	1/7/2001 1:48:56 AM
From: John Madarasz	Read Replies (1) \| Respond to of 99985

Michael Dell is buying Exercising options is not buying, that is free money that his company "granted" him at the expense of shareholders in the common. Legalized robbery is all it is... to the tune of 249 million dollars

To: John who wrote (66154)	1/7/2001 5:35:11 AM
From: Square_Dealings	Read Replies (3) \| Respond to of 99985

John, The stock option ponzi scheme is one of the most misunderstood rip offs to the public ever. The accountants have designed it so that the money that is drained out of a company when it issues stock in option exercises ( for example the windfall M. Dell receives by exercising his options at $.98/shr when the stock is trading at $19 ) never shows up as an expense to the company. Basically the stock holders just dumped a bunch of money on Mr. Dell when he exercised, it was the current shareholders that in fact just paid more for their own shares! I would load the boat at $ .98/share too, and write myself some new options, which is exactly how it works. If stock options were accounted for as an expense to the company, which they clearly are, the CSCO for example would have 0 earnings. The company issues more stock options each year than is ever made in profits. A bullish sign for DELL would be to see M. Dell step up to the plate and buy a bunch of the stock at $19/share or the same price the rest of us have to pay (current market). good luck M.