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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (38372)	7/24/2002 11:30:02 PM
From: Joan Osland Graffius	Respond to of 52237

Lizzie, DELL may be a poor example as they goosed their earnings by selling puts. This worked great until the stock tanked and as far as I can tell - if you mark to market the stock commitments they have to buy over the next few years you will find they have very little cash!!!!! I do agree with CFO's legging into short term guaranteed debt investments with cash based on their requirements for that cash. I also expect the company to return cash that is not required to me through dividends. They can also buy back their stock if it is "cheap" and send that to me through a tax free dividend. I like this even better than a cash dividend as I can hold the stock and sell it for a long term capital gain. My point was if I buy stock in a company, I expect the management to use their capital to increase my wealth buy investing in their business - not in other companies business through a in-house mutual fund. Intel is a good example of having an in-house mutual fund. If I want to invest in other businesses I can do that myself. Joan