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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Joan Osland Graffius who wrote (15254)	8/18/2002 7:23:00 PM
From: mepci	Read Replies (1) \| Respond to of 78526

Joan:It is an interesting concept you brought out. Here is another analysis using Dell as an example. From the time Dell went public to 2001 Dell bought stock at an average price og $10 (officially). But actually their average price has to be higher more like $30. The remainder is profits from buying calls and selling puts. That is $20/shr on the 900M shares was swept under the rug. Of course that profit would have been wiped out because selling these shares to employees (mostly management) at an average cost of $10. So the $20 handout was hidden from shareholders. Now that Dell has to take the loss on the puts, they are conveniently taking $2.8B from shareholder equity. I think we have a strong argument in favor of totally independent boards. Let us see how many lawyers will pick on the boards.