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Technology Stocks : DELL: Facts, Stats, News and Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Gabriel008 who wrote (195)	10/24/1998 5:23:00 PM
From: Gabriel008	Read Replies (4) \| Respond to of 335

Here's a Cramer article that should imply that DELL bought back a lot of its shares in the $40 range 1 days ago. Wrong! Rear Echelon Revelations: The Simple Supply/Demand Equation Spells Bullishness By James J. Cramer 10/24/98 5:11 PM ET If you asked me what has come out loud and clear during the first two weeks of earnings period, it's simple: Corporate America went on a buying spree. Of its own shares. Most of the time when companies announce buybacks, they are lethargic affairs, amounting to token buying or perhaps enough buying maybe just about to offset the number of options issued to executives. But this time was different. The buying done during that dip exceeded all expectations. Companies like the drug companies bought back billions of dollars of stock. Tech bought back stock. Banks bought back stock. It was a time of tremendous EQUITY SHRINKAGE. By itself that wouldn't mean anything. But when you couple it with the closing of many takeovers (even though many were equity for equity and can't buy back immediately because of pooling rules) and the worst underwriting market I have ever seen, you will see a dramatic decline in the number of shares out there. That's the most bullish thing that's happened this year. We went from a period of equity shrinkage in the early 90s, to a period of way too much equity, courtesy of all of the hundreds of equity offerings in the mid 90s. Now, very little can come public and more deals are scrapped than are done. It is true that a lot of money has swiftly gone to the sidelines during this era. But it is also true that it can come back. Yet, the equity that was crunched is not coming back. The pipeline for deals, which should be brimming, is empty. Cash tenders keep occurring. That's another reason why when we snap out of the torpor we are in you could see some amazing moves. There simply is less equity to go around. That's bullish.