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

To: Ali Chen who wrote (174877)	5/17/2005 4:35:33 PM
From: rkral	Read Replies (1) \| Respond to of 176387

Ali ... re "employees paid back to Dell $161M. This makes the average strike of about $8 (assuming my gestimate of 20M exercised shares is correct, see my post to Ron). Must be mostly 10-yrs old options close to expiration." The split-adjusted exercise price of options granted in '95 and '96 would be about a quarter ... not $8. Relative to a prior post: The "weighted average" ("average") shares means the average is time-weighted over the accounting period. Dell began F06Q1 with 2485MM shares outstanding, not an average. Assuming no other impact on shares outstanding, the repurchase of 50MM shares could result in a average anywhere between 2435 and 2485MM shares. Of course, these extremes are unlikely because it requires all 50MM shares to be repurchased at either the beginning or the end of the quarter, respectively. Repurchase at a flat rate of about 750,000 shares per trading day would result in 2460MM "weighted-average basic shares". But Dell reported fewer average shares and some option exercises, so we can be quite sure most of the repurchases were in the 1st half of the quarter. However, we could have learned that -- with likely less effort -- by noting that the average repurchase price was near $40 and looking at a chart. Unfortunately that information doesn't help determine the number of exercises, but WAG away anyway. Ron