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


To: BWAC who wrote (169488)5/3/2002 1:06:16 PM
From: GVTucker  Read Replies (2) | Respond to of 176388
 
You aren't double counting. Both are costs of issuing stock options to employees. If you ignore either you aren't capturing the full impact.

Where on DELL's earnings do you see the impact of the $1 billion plus that the company shelled out last year to prevent dilution?



To: BWAC who wrote (169488)5/3/2002 1:20:08 PM
From: GVTucker  Respond to of 176388
 
Just an added thought to kind of clarify what I said before.

If you give executives a million shares of DELL, then shareholders would be diluted by 1,000,000 shares. I think we'll all agree on that one.

But that doesn't even take into account the strike price of the options. If those million options had a strike price of 1¢, then it would cost the company a whole lot more than if the options had a strike price of the current market value. That's why the dilution alone wouldn't account for the full cost.



To: BWAC who wrote (169488)5/3/2002 2:51:37 PM
From: mepci  Read Replies (1) | Respond to of 176388
 
BWAC: It is not two for one, it is one for two. options has cost in operating expense as well as dilution.
Tell me what is the true value of your share if Dell is to liquidate today?