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To: Jimbobwae who wrote (163903)5/5/2002 6:36:47 AM
From: KeepItSimple  Respond to of 436258
 
Ding ding ding! We have a winner. Here is the smoking gun as to why tech companies MUST count options given to employees as an expense! In Dell's case, they have to spend billions each year in COLD HARD CASH to offset the dilution resulting from mikey and the gang dumping millions of shares! Of course, with most tech companies it is even worse because they don't make a profit to begin with, so they don't bother buying back shares to stem the dilution at all.

Greenspan knows this, and knows it is time for tech companies to come clean. The game is officially up.

Dell is toast on monday, btw.

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The buyback program is tied specifically to Dell's stock option program for employees. As more employees exercise options, Dell must create new shares of stock, which dilutes the value of the shares already in investors' hands. The buyback program helps offset that.