Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Mick Mørmøny who wrote (169665)	5/19/2002 8:30:37 AM
From: Sig	Read Replies (2) \| Respond to of 176387

Re Dell options. As required by the SEC for some years, Dell has at the end of each yearly report, computed and stated the effect on earnings if the cost of all options were accounted for. If some Congressmen now want to force all companies to deduct them from earnings, then its not necessarily a disaster, because the same amount of investment dollars is still available overall and will be divided among equities on a comparative basis. I think its very foolish to now change such complicated rules as govern the methods of income reporting but its human nature try that. Lots of people would like to change the Constitution also. In regard to Dells buying of calls and selling puts, Dell has the option of buying stock to cover the puts as they come into the money, and thus is not "out" the difference between the strike and todays stock price which makes it very difficult to say whether there is a significant loss. That is, the loss would not be the difference between the $45 strike and todays stock price. The overall result will not be known until the stock price at the final options expire is known ,and anyone capable of knowing that price should be richer than sin and not needing to read this thread. Sig

To: Mick Mørmøny who wrote (169665)	5/20/2002 10:37:30 AM
From: D.J.Smyth	Read Replies (1) \| Respond to of 176387

Mick, re Article, "These wealth transfers are now relegated to the footnotes of companies' financial statements. But last week, Standard & Poor's announced that it would begin deducting the expense of stock options from its calculations of companies' core earnings. Such a move by S.& P., one of the nation's largest purveyors of financial information, means that investors will be able to grasp option costs even if companies keep burying them in the footnotes." Weath transfers to the corporation? What about the transfer of the "incentive to suceed"? Define "wealth transfer" in relationship to corporate granted options and you've defined the stock market as a whole... Bear Stearns is well known for its consistent emphasis on shorting stocks. It is not surprising to see them jumping on a wagon for a self-serving number which may or may not be beneficial to shareholders. S&P wants to be viewed as the King Kong of trust. But, they are as far from "Trust" as anyone else. They are caught up in their own "internet quagmire" and are looking for a way to be continually perceived as respectable. Why don't we start wearing grey uniforms with a red star for a patch? With a grey uniform we can all, at least, be viewed as being equal in the eyes of the so-called "commoners". Is it not possible that if you artificially depress the option activity, at the executive level, through "purposeful publicity", you also depress a key ingredient to corporate success? The Financial Press has their own agenda. They need to sell space. How do you know you're getting the complete corporate picture even if you change the option reporting methods? There are always ways to enrich others. At least with options it remains reportable. I don't think anyone knows what the ultiimate end result will be when they start scraping for all these artificial changes to the corporate options picture. Such facial changes mainly serves those who wish to artifically depress stock prices. Dell reports decent numbers. The day after, it is not surprising to see those who would benefit from a continued short position try and redefine success as it relates to corporate options.

To: Mick Mørmøny who wrote (169665)	5/20/2002 10:49:51 AM
From: D.J.Smyth	Read Replies (3) \| Respond to of 176387

The true "transfer of wealth" is not from shareholders to the corporate board room. It is from shareholders to WallStreet. Certain members of the WallStreet community are looking for another catalyst to justify their own trading methods...to increase the activity relative to the market.

To: Mick Mørmøny who wrote (169665)	5/20/2002 4:02:53 PM
From: mepci	Respond to of 176387

Mick: I also trade, but with a slow accumulation protected by covered LEAPs. I do believe this mismatch is temporary (may take 2 to 3 years to be taken care of). My planning is for over a 2 year period. I do believe Dell is too good a company to go bankrupt in that period. In more than an year since I came to this board, I do believe most of the SI Dellheads wized up and are trading and using options to protect themselves. I do hope we can present a unified face to Dell as shareholders, so that we can add our contribution to the common good.