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

To: Chuzzlewit who wrote (52162)	7/18/1998 3:52:00 PM
From: Sonki	Respond to of 176387

chuzzlewit, does the stock buy increase diluated erning/share? is dell buying back shares at this price? i doubt it. if they are buying chances are that they bought leaps or they are exercising their leaps from 2year ago. like we do.

To: Chuzzlewit who wrote (52162)	7/18/1998 4:20:00 PM
From: broken_cookie	Read Replies (1) \| Respond to of 176387

Chuz, I have heard all the theories about buybacks and shareholder value as well. If the choice is between paying dividends or retiring shares, shareholders that take profits as long term gains avoid some income tax when the money is spent to diminish the outstanding shares. The key is: Are the shares retired? Because if they are not, little has been done to enhance value. If they are used to augment employee salaries, then the money spent should be counted as operating expense. Perhaps someone on the thread could comment as to what per cent of the shares purchased are retired. TIA

To: Chuzzlewit who wrote (52162)	7/18/1998 5:55:00 PM
From: jimleon	Read Replies (1) \| Respond to of 176387

Hi Chuzz, Still do not know why to this day everyone gets hyped up about stock splits. 1. Stocks splits do nothing to shareholder value or I would split my companies stock every week if I could. 2.From my research I have read academic are studies that show a slight upward bias for stocks that split, but nothing significant. Even if it was significant, it would cancel itself out over time like the January effect with efficient markets. 3. A company buying its stock back is CLEARLY bullish on the future of the company. Not to say that factors could arise that make Dell have slow pc sells, but the company has "faith" in the future. 4. If I am in charge of Dell and have all this excess cash, I have 3 options basically. a) Invest in money market (t-bills) and not risk the cash. B) Invest in say a stock portfolio index fund to try and beat t-bills. Or real estate, etc.. C) Take a huge risk and bet it on stock in the company. Think of Dell being an individual investor and betting it all on one stock. Thus risk/reward spectrum is there for Dell. Time will tell if buying back shares was a good idea. If Dell keeps surging, the value of the company (assets) will increase, if Dell declines, then the value will decrease for shareholders. BUT, for sure this will make the eps calculations more attractive since there are less shares outstanding.... This is clearly great for stock investors in DEll, cause EPS will go up, all else being constant....... Thoughts?? Jim