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To: hueyone who wrote (64621)	9/15/2003 10:31:59 PM
From: PerryA	Read Replies (2) \| Respond to of 77400

Of course a company generally adds the amount of stock option compensation deducted from earnings back in to its cash flow from operations number on the cash flow statement. If reported correctly, it would only come back in "cash flow from financing activity" rather than "cash flow from operations." Issuing stock, options, or debt should not affect the operating cash flow number. Regards, PerryA edit -- yes to your next post!

To: hueyone who wrote (64621)	9/15/2003 10:59:01 PM
From: Don Lloyd	Read Replies (3) \| Respond to of 77400

hueyone, Snip: Dell's problems are twofold. The first is that the company's employee stock option grants and option purchase plans have been so generous that most of the value created by its business gets redistributed from shareholders to employees. The second problem has been its policy of repurchasing shares at high prices to combat share dilution. These criticisms are completely correct. When a company publicly admits that it is buying back stock to combat dilution, it is committing gross fraud. While there can be legitimate reasons for buying back stock with shareholder funds, such as an excessively low stock price or possible dividend tax considerations, this is not one of them. It provides no actual benefit to shareholders and only serves to mask excessive dilution. Regards, Don