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

To: Chuzzlewit who wrote (41569)	5/12/1998 1:48:00 PM
From: Jim Patterson	Read Replies (1) \| Respond to of 176388

re: >>>I think you still don't understand the purpose of stock buybacks. These are dividends, and they work especially well when management believes the stock is undervalued<<< I think we could both debate this topic for quite some time. You are looking at stock buy backs in the most positive way possible. I am looking at stock buy backs from a long term negative point of view. I see them as a sign of greed on managements side. Drive up those stock options. If the company finds itself short of cash in 2 years, The buy backs may be reflected upon as a poor use of cash. If this never happens, It will be, as it is today, reflected upon as a great idea. As for Dividends, Taxes, and capital gaines, These are just reason points to make a case one way or the other. Investors are not intrested in Dividends today. In 1974, they were. You are correct, and I know/knew that DELL had LT debt before, and they paid it off. Do you know when the last time was that DELL issued LT debt ? 1995 is the last increase of LT debt on the ballance sheet. And DELL paid that off. Why is DELL suddenly in need of raising $500 million Cash. Is their business not generating cash any more ? If it is, then why the need? or does DELL not need the cash, they just thought they would take out a $500 million dollar loan just because they can? Jim