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

To: jim kelley who wrote (42678)	5/17/1998 12:43:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Good morning Jim, I haven't been able to download the Forbes article yet, so I have no specific comment. I also find the accounting for the put options somewhat murky, and I'll need to investigate that further. At first blink, however, it appears that the Forbes article may be an overstatement of the problem because the equity section as a whole has increased. Essentially, we have a system which allows companies to pay their top executives money from the pocket of investors without properly accounting for it. This problem includes virtually all large US companies, and is particularly acute in the technology businesses. My preference would be to explicitly state the cost on the income statement, and to issue stock options for a restricted class of stock only -- one that cannot be sold for five years. It would be nice if there were a general shareholder revolt on this issue for all companies. TTFN, CTC

To: jim kelley who wrote (42678)	5/17/1998 2:02:00 PM
From: Jack T. Pearson	Read Replies (1) \| Respond to of 176387

FORBES article Article claims Microsoft is liable for about 10 times what it earns. Suspect someone doesn't understand what they are reporting. Makes me suspect the author is treating owner's stock ownership as options. I guess if Bill Gates sold all of his stock at once it would be a down day for MSFT.

To: jim kelley who wrote (42678)	5/17/1998 5:37:00 PM
From: jim kelley	Read Replies (1) \| Respond to of 176387

Paul and Jack, It appears to me to also be a gross overstatement. DELL's cash position is up where its needs to be. Their growth rate is certainly wonderful. Perhaps, these guys are counting the cost based on the difference between the price of the options when granted and the current fix on price of the stock. If that were the case they could claim that the company paid these guys too much. On the other hand , It is these very people who are managing the companies operations so well. Regards, Jim Kelley