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

To: James Fink who wrote (36035)	3/30/1998 12:28:00 AM
From: rudedog	Respond to of 176387

excluding options really doesn't make sense - maybe if they could determine vested options you might be able to determine something of interest. WSJ is reputable but often get to the wrong answer. Their 31% number may be technically correct as a percent of direct holdings, but this is 'true but trivial' information if his vested option position is large in comparison to his direct holdings. Options are of course one of the major financial drivers for senior folks in the high tech industry. Depending on the plan, qualified options may be convertible with potentially some tax benefits if one has capital gains to offset (since you have to pay in the strike price at conversion). Non-qualified plans are treated by the IRS as a stock-indexed bonus since the option holder never takes possession of the stock - in this case exercise of the option almost always has some negative tax implications as it is treated as ordinary income. The unexercised options have no tax implications.

To: James Fink who wrote (36035)	3/30/1998 11:09:00 AM
From: Meathead	Read Replies (3) \| Respond to of 176387

No sir. Read the proxy before getting your panties in a wad. It's more complicated than the WSJ would report. Mis-information and sensationalism are the scare tactics used to create a perception that insiders "know it's over" when anything could be further from the truth. Newbies who don't investigate and analyze to uncover the truth get burned badly when shorting high quality stocks like Dell, Cisco and Microsoft based on journalistic kaka. The truth is that two thirds of Morts stock intrest is not fully vested and not excerciseable. 31% represents one third of one third (or roughly 10%) of entire holdings. Mort has a huge fortune at stake so I doubt he'd be spreadin lies to dump small portions of his stock. The same goes for other top executives at Dell. Most folks don't realize just how much stock these guys actually have and how much is riding on the continued performance of the company. All of the big decision makes have their fortunes directly tied to the performance of the company/stock. This is one of many reasons why it's great to own this stock... or would you rather own Compaq where management makes their money from their salaries and not much is tied to stock performance... you can see the results of such an incentive structure. Happy shorting MEATHEAD