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

To: BGR who wrote (80477)	11/15/1998 3:52:00 PM
From: jim kelley	Read Replies (1) \| Respond to of 176387

Dell buys back the stock at well below market value. They do this by using options.

To: BGR who wrote (80477)	11/15/1998 7:20:00 PM
From: Richard Tsang	Read Replies (1) \| Respond to of 176387

The excess cash, if not used to repurchase shares, will remain as excess cash. Since the cash comes from net income it will not have any impact on net income, except for potential interest income or investment income that the cash can generate. RT

To: BGR who wrote (80477)	11/16/1998 11:27:00 AM
From: Chuzzlewit	Respond to of 176387

Apratim, I have another (possibly dumb) question and would appreciate any help. Are net incomes adjusted for money used in share buybacks? Not a dumb question at all. No. gains and losses in trading your own securities or derivatives are not included in income statements. There is a major ethical question about companies trading their own stock because the company is in position to know things about its operation that the individual shareholder does not know. For this reason transactions in a company's stock are considered (naively IMO) the result of the capital needs of the corporation, and hence they are not income generating activities. TTFN, CTC