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

To: Wyätt Gwyön who wrote (174980)	6/8/2005 1:58:45 PM
From: GVTucker	Read Replies (1) \| Respond to of 176387

Darffot, RE: in his latest letter Fred Hickey points out that Dell made $17.2 billion after tax net over the last ten years, but has only one-third ($5.6 billion) left on the balance sheet. what happened to the rest of the money Dell "made". Mostly that went to stock options expense. That expense isn't reflected on the income statement, only on taxes and the balance sheet. So if you add up the income statement profits, it isn't the same as the retained earnings on the balance sheet, which does indirectly include expenses due to stock options. also book value in latest Q fell to $5.6 billion or 2.24 per share, from $6.1 billion or 2.35 per share a year earlier, despite "record" earnings. Any time a firm buys shares back at a price above book value, this decreases the book value per share. And DELL has been buying back shares pretty aggressively at prices far above book value. That doesn't necessarily mean this is bad or good, it is just the way the accounting works.