SI
SI
discoversearch

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 Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?


To: Dell-icious who wrote (52083)7/18/1998 6:31:00 AM
From: LemurHouse  Read Replies (3) | Respond to of 176387
 
Its not the split that is significant, its the buyback. Splits, as has been discussed many times on this and other threads don't increase either the value of the company or of one's piece of it. As Buffet says, you have two hatcheck tickets instead of one. Nice psychologically, and perhaps increases the investing pool, but does not directly appreciate your money.

Buybacks are different. If the company buys back the stock and retires it, then each remaining share represents a proportionally bigger piece of the company, and is therefore more valuable

However, if the buyback is simply to buy stock which will then be distributed to management under various performance incentives, then that's a different story. If that's what they are doing with this money (what did the press release say, 60 to 70% of cash flow?!?!) then that is an appallingly large number and has an egregious impact on the value of our shares. I like performance incentives, but not at this scale.

Does anyone know what the company is doing with the shares?

Chuz -- any ideas? I know this is a concern of yours.

Cheers.

PS: I love this company, so no flames please.



To: Dell-icious who wrote (52083)7/18/1998 1:47:00 PM
From: jimleon  Read Replies (2) | Respond to of 176387
 
The stock split does NOTHING for shareholder value.
I also don' think Dell buying its stock has an effect
on the price long term as well.

Jim