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

To: Bilow who wrote (857)	5/26/1998 5:55:00 AM
From: Moominoid	Read Replies (1) \| Respond to of 2578

I thought share buy backs were in place of paying dividends. For high income US tax payers tax on capital gains is lower than on dividends so boosting the share price this way is tax-effective for shareholders assuming they can't find anything to invest the money in. Or have I got this wrong? David

To: Bilow who wrote (857)	5/26/1998 8:24:00 AM
From: rudedog	Respond to of 2578

This is clearly not a Dell-specific issue and Dell is in line with most High-tech companies. But overall the sector provides a significant amount of executive comp via options, and this compensation does not show up as an expense. This does not signal 'rot from within' or anything like that, but does reflect a practice which transfers value from shareholders to company officers in a way that is not very visible from a straight analysis of the balance sheet.