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

To: jbn3 who wrote (41213)	5/9/1998 10:22:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Good evening Bachman, As I recall, Jim seems to think that carrying debt is something new for Dell. It isn't. During 1996 they redeemed the remainder of their 11% senior notes for $95MM. Even today the company has about $17MM in LT debt. TTFN, CTC

To: jbn3 who wrote (41213)	5/11/1998 11:10:00 AM
From: Jim Patterson	Read Replies (3) \| Respond to of 176387

3, I seem to be the only one on the thread that has this point of view. I am of the opinion that DELL could do one of the following without having done the Debt deal. 1) Continue their share buy back program. 2) Expand with internaly generated cash. Dell wants to do both at the same time. They can't generate enough cash internaly to do both. So they have issued Debt. I think this is a poor stratagy from a long term perspective. This was not a good move for Michael's grand children. Last night, it dawned on me. Many CEO's today have very little confidence in the long term future of their companies. Therefore, their best stragic moves are to take steps to drive the stock price as high as possible and increase the value of their own stock options. If it means increasing the longterm risk to the company so be it. It is not the Debt that I object to. It is the reason DELL is issuing the DEBT I object to. I don't think any of this will matter short term as the stock should hit $100 by the time they report. It will matter when the company needs cash for day to day opperations. Long after we have all sold the stock because the story has changed. I hopefully will be short when this time arrives. The debt will become a greater hinderance to success in the long run, than the benifit of the share buy back today. Jim BTW, Yes I have a morgage, But unlike many in the US today, I am trying to pay mine off, and I detest the concept of a home equity loan. I had an old firend call me, they wanted to take out a home equity loan to buy stocks. Yea, it is great if it works, but the down side is quite hazzardous.