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

To: rkral who wrote (174671)	4/10/2005 2:58:58 PM
From: kemble s. matter	Respond to of 176388

Ron, Hi!! Yes, a dilemma that is easy to identify with and obviously a great debate opportunity for a business class... In defense of this past practice, one must take into account that this company grew from one employee to the current number of thousands world wide...All in an incredibly short period of time...Transition would have killed the success of this company...The management (prior to the hiring of Mort) were "babies"... Keeping this team in place and promoting from within was critical (impressive chapters from Michael's book)...All the while, these young leaders were being "seduced" by every imaginable corporation (I have heard first hand some "offers" that would make anyone drool)...Corporations that were being taught DELL's successful efficiency by some of these same leaders...A dangerous situation... DELL had to create a "golden handcuff" climate that would destroy the lure others were tossing in the path of reps and executives...One must remember that technology and the $$$ the brick and mortar companies were losing was enormous...DELL was sending "apostles" out there to "help" other companies become "like DELL"...Profitable service revenue growth and the means of obtaining large contracts...Yet, like I said previous...A very dangerous situation when the "hunter gets captured by the game"... I'm sure that thousands of other corporations are offering similar packages...Surely not all are as rewarding though... Ron...I wish there was an easily answer to all this...I can honestly see your concern...And, I'd be lying if I told you I wasn't concerned...Consistent winners cost a great deal to keep...Someone else that is desperate will surely pay them a fortune to bring their success story to the rescue...DELL was smart enough to know that everyone else that was trying to catch DELL was in constant transition and the sales at DELL rocketed while these transitions were occurring...How much was too much? Yeah, I hear your concern...not many of the employees are starving that stayed... :o) Though, it is interesting that DELL just announced a reduction in these options...Because the stock isn't exactly throwing out five splits in 36 months anymore... Best, Kemble

To: rkral who wrote (174671)	4/10/2005 9:02:36 PM
From: Sig	Read Replies (1) \| Respond to of 176388

Am just wondering how much detail you have looked into in regard to the options grants. The Dell financial report from the annual report is confusing to me. Total assets up $4 bil LT debt unchanged, yet current liabilities are up a bit over $3 bil. 51 mm shares repurchased. I did not see the list of options granted or options exercised in the last report. So cannot compute a cost allowed for options. Most new option grants are made at a strike price close to the share price on the options grant date Therefore they do not represent a significant cost to the company unless the stock goes up. If they reported the value of outstanding options on the date covered by the last report, and allowed $3 bil charge for it, the stock may be $5 less today and no allowance need be made if they are now out of the money. And yet it seems that the rise in current liabilities has something to do with options Altogether clear as mud to me. I may have to download the whole annual report in that unreadable PDF format and print it out to see what is being reported. And try to find the options granted listing. Sig