Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : DELL Bear Thread -- Ignore unavailable to you. Want to Upgrade?

To: rudedog who wrote (855)	5/26/1998 2:44:00 AM
From: H James Morris	Respond to of 2578

From Wsj interacive, <Even Dell Computer Corp., generally insulated from inventory woes because of its direct-sales business, showed a greater-than-expected decline in its average selling price in the first quarter. While it is clear analysts foresaw price declines in the business market, the size has caught many by surprise. "We're seeing an acceleration in that price erosion," said Kevin Hause, an analyst also at International Data Corp., "mainly due to the channel inventory problems.">

To: rudedog who wrote (855)	5/26/1998 5:30:00 AM
From: Bilow	Read Replies (3) \| Respond to of 2578

I looked up those figures for DELL's option expenses: Most recent year's earnings reduced from $1.28 to $1.19 per share when the fair value of option grants is expensed. This is a relatively small amount for high tech. As a comparison, MSFT's earnings would be reduced from $2.63 to $2.32, somewhat higher. The companies that really get their earnings slaughtered when options are taken into account are the ones that are just barely profitable. The thing to look at might be the ratio of labor costs to earnings... -- Carl