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

To: Chuzzlewit who wrote (52426)	7/21/1998 11:00:00 AM
From: Marie Smith	Read Replies (1) \| Respond to of 176387

Chuzzlewitt -- Re: Stockbuybacks You asked if treasury stock could be reissued. Yes, it can for the 4 reasons I gave for buybacks. I don't know if those purchased on behalf of employees go into a separate equity account. It certainly is possible that a company would have some sub-accounts that roll up into one main treasury stock account for reporting purposes. Also, it is true, as you say, that newly issued shares could be used for a merger. I agree with you that professional managers view their company as a personal fiefdom and see stockholders questions and concerns as annoyances. I believe that may executives "loot" their companies and the stockholders to fill their personal coffers through their huge compensation packages. A case in point is Laurence Coss of Green Tree Financial (now merged with Conseco). Management does play smoke and mirror games with the financial statements. To use an old cliche -- they cook the books. Last week the WSJ had an article about Cendant cooking books by recording fictitious revenues. Where were the auditors?!!! One of the most difficult jobs of an accountant is to convince management that standards MUST be followed; that it is not permissible to defer a loss or an expense or hide it entirely. Which brings me to another point. Accounting standards are now written by the Financial Accounting Standards Board (FASB). About five or six years ago, FASB tried to issue a standard whereby coporations would have to record the full value of stock options as an expense on the Income Statement. Well, that was killed by the big corporations. FASB knuckled under. There are seven members on the board and they are overseen by a Foundation. Guess who sets on the foundation? Executives of the big corporations and the big accounting firms. Sounds like the fox guarding the henhouse. The shareholders are not served. You know the old saying that you don't want to see sausage or laws being made; add to that, accounting being carried out!! This is the Dell thread, so I need to mention Dell. I can't imagine the executives there being unscrupulous. There is absolutely no bad news.