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

To: Jim Patterson who wrote (55529)	7/31/1998 2:56:00 PM
From: Electric	Respond to of 176387

Jim, I agree with that analysis. A company can carry a percentage of debt and it is healthy to do so. If the firm can make a better rate of return on the investment than it pays for interest payments, then obviously the decision is an easy one, you accept the proposal and do it. I am sure that they arent paying a high interest rate, and know that the stock will continue to roll forward, so the NFV of the intrest payments are much less than the stock will be valued in treasury.. Has Mikey bought the stock already? Reducing the float cannot do anything but help the run of the stock. And looking at some of his and Mrs.Dells transactions this year, it looks like they are doing just fine. DELL bouncing off the lows..

To: Jim Patterson who wrote (55529)	7/31/1998 3:30:00 PM
From: SecularBull	Read Replies (2) \| Respond to of 176387

Yes, but you had to borrow to buy your home. Why did you buy a home? Could DELL feel as strongly about its stock? LoD

To: Jim Patterson who wrote (55529)	7/31/1998 3:41:00 PM
From: SecularBull	Read Replies (1) \| Respond to of 176387

Jim, they borrowed the money to pay for the plant expansions in full, thus freeing up cash-flow for the buy-back, etc. It really isn't like robbing Peter to pay Paul, as you might suggest. It isn't as if Mikey went out and bought $500M worth of stock with the debt offering proceeds.

To: Jim Patterson who wrote (55529)	8/1/1998 1:21:00 PM
From: Marie Smith	Read Replies (2) \| Respond to of 176387

Jim Patterson -- Dell's debt Interest on Dell's debt is a tax deduction, so the real cost of borrowing is less. Also, you state that Dell may reissue the stock it had bought back and take a loss. Actually, whenever a corporation buys and sells it s own stocks, any "gains" or "losses" occurring are not put on the Income Statement and neither are they deductions on the tax return. So called "gains" and "losses" are taken care of by adjusting stockholders' equity so it is handled entirely on the balance sheet. A company is simply forbidden for making gains and losses on transactions involving its own stock. You can see why. Think about the manipulation that would occur if this was not the case. Marie