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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Kip518 who wrote (13492)	9/5/1998 12:31:00 PM
From: BDR	Respond to of 18691

Dell's turn may come but the collapse in bank stocks is happening now. techstocks.com

To: Kip518 who wrote (13492)	9/5/1998 12:50:00 PM
From: Greg Jung	Read Replies (1) \| Respond to of 18691

Dell buys its stock back at $40/share. After split, $20/share. It makes play in options (sell puts/buy calls) to do this. They generate cash and give it to shareholders, in effect. They don't make "strategic investments" of the sort that traditional assets are composed of. They make computers. Not simple, but not so complicated that they should throw tons of money at it. Computers (PC boxes) make majority of sales at HWP - not printers and all the rest of their line. Dell is only "tech" company (besides IBM) that I know that has a regular share reduction program. IBM funds from increased long-term debt out of the financial engineering department. Dell from cash flow. Whether that's worth 70* earnings is of course another question. But overvaluation generally hasn't worked well as a shorting strategy. Greg