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

To: stubba who wrote (169575)	5/8/2002 9:23:16 PM
From: stubba	Read Replies (1) \| Respond to of 176387

here is another analysis for those who seem quite fixated on shareholder equity if DELL had not bought back any shares over the last six years and kept the cash instead and allowed dilution the earnings would have been almost identical over last twelve months - and shareholder equity would be $12.5 billion larger DELL earned about $1.75 billion pro-forma over last twelve months with approx 2.7 billion weighted avg shares outstanding. this yielded about 66 cents eps increasing the weighted avg shares to 3.7 billion because they refused to repurchase their own shares would have decreased the eps to about 48 cents but they would have earned about $600 million of interest income on extra $12.5 billion of cash. this would have added about 16 cents to earnings and made the total about 64 cents instead of the 66 cents reported. very little bottom line reported earnings difference but a very different balance sheet for DELL. would the company be perceived any different if the shareholder equity and cash balances were both $12.5 billion higher today but there were and add'l billion shares outstanding ???

To: stubba who wrote (169575)	5/8/2002 9:36:47 PM
From: mepci	Respond to of 176387

stubba: Let us first put known facts by source. Increase in SE: $4.7B-$2.3B=$2.4 less than $1/sh. This what really matters to shareholders. $50: is not the exercise price. It is the price at which mgmt. sold. We don't know exactly what it is. $50 may be is high. How about $40. Whatever we pick is a guessed number. For sure it is not less than $30. Let us it is $30. What did SEC indicate as the average exercise price? $1, $4, $14. It certainly not more than $9. Number of shares retired: I have not seen anything that said Dell retired any shares anytime. Can you point to the exact reference in the reports? Shares Outstanding: Current-2.595B(from nasdaq fundamentals) 1999: 2.536N(from 10k-99) That is a reduction of 59M shares. So I am going to assume nothing is retired unless you point me to a report which says so. Until then I am going to assume your 1B shares went for stock option exercises. With these new assumptions mgmt./employees took in $21B to stockholders $2.4B. Even if the exact figure is not 10 to 1, even 2 to 1 is lopsided. I certainly like to sharpen the pencil get these figures closer to real. That is the job Scheinder should have done. Of course the derivative business was mishandled by him, after a fine job done by Tom Merideth. One more thing: What period does the 1B stock purchase cover?