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: SuperSonics who wrote (34221)	3/13/1998 1:23:00 AM
From: jbn3	Read Replies (2) \| Respond to of 176387

If you go to SI DELL profile, you will see that DELL bought back 14mm shares last quarter. That would cost them about $500mm. Man, borrow money to buy back shares, crazy! SS, Your figures would suggest they paid about $35.75 a share... 14,000,000 x $35.75 = $500.5M ... And if they are buying back their shares at $35 when the market price is $65, I am certainly not going to argue with them. Besides which, debt interest is an expense, which can be charged against taxes. At the current low interest rates, they can borrow money to build production facilities which will generate slightly <vvbg> greater revenues than their debt cost... And which can also be depreciated. Where is DELL located on the list of revenue generated per employee? It should make Jim Patterson happy -- as I recall he was very uncomfortable that DELL had such a high price to book ratio, and this should help bring that down by increasing DELL's book. <vbg> I think it is an excellent move. Regards, 3.