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


To: Sig who wrote (165562)5/24/2001 4:38:39 PM
From: stubba  Respond to of 176387
 
Sig - I certainly understand the selling puts and buying calls to help facilitate share buyback. Both of these methods are essentially bullish positions. Buying back the shares helps offset the dilution created when Dell has to issue shares for exercise of employee options, employee stock purchase plan, and the 401k match. I have noticed recently the language in notes to financial statements that says they have also sold calls. This is not bullish. Not entirely sure, I like Dell the company betting there stock won't increase above certain levels.

If you listen to some of the commentary from last couple conference calls it is clear that Dell is in phase where they are having to buy back shares at higher than current mkt to fulfill the put obligations.

I originally thought you might be headed down the path of some short sellers in Dell that were touting that Dell made more money betting on their own stock than selling computers.