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 (172670)	4/27/2003 5:40:14 PM
From: Sig	Read Replies (2) \| Respond to of 176387

Beware the next Dell: Dell is the best of the breed here. But its important not to expect it to be "the next Dell" siliconinvestor.com These multicap stocks, with Msft having over 10 bil shares outstanding, are being traded out the wazzoo, the three old grey haired guys in a New Jersey basement who run the market from behind the scenes are fully aware that people do not forget the good old days, that they will keep trying to get back on board the old gravy trains. Meanwhile incoming money is being absorbed by fees on the huge number of daily trades so there is no surplus left to raise the stock price. These stocks can go up but only if the underlying markets go up but the world economy does not indicate that much is going to happen. The churning seems to occur perhaps 5 or 6 times per year, and will continue as that is the modern way for brokers and funds to make money and has worked so well for them. John Koligman is the best leader here in ideas on ways to handle Dell profitably, and the channels on the noted stocks willl probably hold for a while yet. Meanwhile I am holding Dell Leaps of 20 and 30 strikes, a Leap of faith in the company But I have gone on to other stocks as being "the next Dells", with that old time momentum. Some of these are worthy of having their own threads, but they are not widely held so its not possible to gather enough enthusiasts without forcing the matter, exaggerating, and feeling responsibility in case they tank. I have been trading consistently for over 6 years with gradual improvement and its been tough go. Some brokers had a discussion last week, discussing how long an active inexperienced trader could last in the market and the conclusion was one year. One year and they would have all your money. The Dell story is fascinating, entertaining, record breaking ( who would believe that a 35 to 40 Bil sales company could grow at 35% a year) hehehehe. Its like creating a new company each year, having $10 billion in sales. Many would be happy to own a company with $1mm sales per year. Dell can create 10,000 of those each year. I wonder what Michael's dad would have said, if he had said "Pop, I want to try selling computers, and some day I will be creating the equivalent of 10,000 new companies every year with each having sales of over $1mm" "Son listen to me, I want you to tell me seriously whether they gave you those drug tests at school and whether you cheated on them" .I have to stop here or I will begin to sound like Kemble. Maybe buy a few more Leaps or something Sig

To: Mick Mørmøny who wrote (172670)	4/29/2003 4:35:31 PM
From: Mick Mørmøny	Respond to of 176387

<font color=blue> Fewer Dell options granted last year </font> <font color=993399>PC maker pares stock incentives by 33 percent; employees exercise record low number during 2002 By Amy Schatz AMERICAN-STATESMAN STAFF Tuesday, April 29, 2003 Dell Computer Corp. stock options were hard to come by last year, and they are likely to be even scarcer this year. The Round Rock-based personal computer maker granted one-third fewer options last year than it did the year before. In the year that ended Jan. 31, Dell granted 84 million options, compared with 126 million the preceding year, according to its annual report filed Monday with the Securities and Exchange Commission. Earlier this month, Chief Financial Officer Jim Schneider said Dell plans to grant about half as many options this year as it did in the past year. As Dell stopped granting as many options, its employees stopped parting with the ones they already have. With Dell's stock price hovering in the mid-$20s, Dell employees exercised a record low 22 million options last year. That's less than half the number of options exercised the previous year and left Dell with $227 million less in tax benefits. Companies receive tax breaks when employees exercise stock options. The number of shares of restricted stock Dell handed out also plummeted, from 2.1 million to 300,000. Restricted shares are normal shares given to employees -- generally top executives -- that can be sold only after a certain time period. Options give employees the right to purchase stock in the future at the share's price on the day granted. Dell's retreat from generous stock-option and restricted-stock grants may just be a reflection of the current woebegone tech employment market: It doesn't have to pay as much to keep or retain employees. But it also could help prepare Dell if the accounting industry decides stock options must be treated as a compensation expense. If Dell had been forced to expense stock options in fiscal 2003, its profit would have dropped by more than a third, or $723 million, to $1.4 billion. aschatz@statesman.com; 912-5932 <font color=blue>Into the windmill: us.news2.yimg.com statesman.com