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


To: mepci who wrote (169574)5/8/2002 8:50:21 PM
From: stubba  Read Replies (2) | Respond to of 176387
 
mepci - your numbers are greatly exaggerated and you are clearly not completely reading or understanding mine

how in the world can you assume that average exercise price of options is $50 when all time high is only $57 and the stock has essentially under $30 for 2-3 years ???

how can you assume that avg strike price of options exercised has been $1 when the SEC reports clearly indicate otherwise ???

further, DELL has bought back 1 billion shares while weighted avg shares have decreased by about 300 million shares over same time period. This means that approx 700 million shares have been issued for options and other benefit plans.

much more likely that avg exercise has been closer to $30 with strikes closer to $5+ on avg

this creates approx $25 diff between exercise and strike multiplied by the 700 million shares yields about $17.5 billion (quite a bit diff from your $50 billion estimate)

of that $17.5 billion amount, the gov't has essentially funded 35% or approx $6.1 billion by allowing a tax deduction for diff between strike and exercise

the details of the share buyback program have been included in the SEC reports for five plus years - any prudent investor likely read and understood the info quite some time ago

if you didn't think it was equitable you probably should have invested your money elsewhere