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

To: Chuzzlewit who wrote (37929)	4/15/1998 12:19:00 PM
From: K. M. Strickler	Read Replies (1) \| Respond to of 176387

C, How about this one that was posted. Borrow the 500 bln, build plants, and write off the interest on your taxes. Let's see now --- 1) Low interest rates -- yes 2) Tax deductible -- yes 3) Leaves other capital for use elsewhere -- yes Huh! 3 otta' 3 ain't bad! regards, Ken

To: Chuzzlewit who wrote (37929)	4/15/1998 2:18:00 PM
From: Boplicity	Respond to of 176387

re: So, I think we should number these negative arguments, and instead of endless postings Jim could just say, for example, 12. Very good I vote for that. Greg--->QWST bringing I2 to screen near you.

To: Chuzzlewit who wrote (37929)	4/15/1998 3:02:00 PM
From: Jim Patterson	Read Replies (3) \| Respond to of 176387

re: Take Jim Patterson as an example. Lets look at some of these uses of debt that you point out. 1. Dell uses the proceeds from the Debt offering to buy back stock. >Good, because the company wants to buy its own stock, Call it corporate margin. It will help EPS going foward to. >Bad, The company will have to pay intrest therefore increasing expences going forward. 2. Dell uses the money for expansion >Good, Great, the company expands capacity. >Bad, If the company uses the money to expand while still buying shares back, then the company is expanding at a higher cost than it could by stop buying shares and use that cash to expand. This would be a more eficient and less costly way of expanding Capacity. 2a. If the company does the debt deal to expand because it nolonger has cash available, that would indicate management made a mistake by buying back too many shares in previous quarters and now must expand in a more costly way. 3. If DELL uses the money to buy another company, >Good, This is great, But why now cut back on the share repurchace and buy the company in a less expensive way. >Bad, Dell does not buy companies and this would be a deviation from their sucessful model. I just think it is unsual for a comapny dooing as well as DELL on all fronts of business to need to do a Debt offering. Jim