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


To: SecularBull who wrote (37903)4/15/1998 10:29:00 AM
From: Lee  Read Replies (2) | Respond to of 176387
 
Hi LoD,..Re:<< INTEREST RATES, maybe!>>

Good answer, but they also may have some use for these funds based on their usually accurate long term vision. Also, as I understand, use of low interest rate funds for expansion might be better because of interest deductions? The financial gurus would have to address this practice.

Just guessing

Lee



To: SecularBull who wrote (37903)4/15/1998 11:00:00 AM
From: Jim Patterson  Read Replies (1) | Respond to of 176387
 
Jim P., INTEREST RATES, maybe!!!! Why wouldn't you borrow at these rates, especially when you have not debt and a high credit rating...

Of course If DELL stoped buying back 1 billion is stock each quarter then they would not need the debt.

Personaly I think DELL is doing a debt deal to raise cash to buy back more stock.
It is not to good for the financial ratios, but it helps EPS numbers and supports the stock.
2, It makes sure that if, and I say a big IF here, their business goes very bad, that they will be in more trouble than without the debt offering.

It is kinda funny,
Most companies go public to raise cash to pay off longterm debt.
Now it looks like mature companies are issuing debt to buy the stock back in.

Jim