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

To: Mick Mørmøny who wrote (81793)	11/22/1998 2:56:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Yep Madafas, Gretchen Morgenson is once more on the money. I believe, however, that there is one inconsistency in the article, when she says But investors wowed by big jumps in income at technology concerns would do well to dig beneath the surface to see if the good news was the result of operations -- or of financial engineering. My understanding is that trading in derivatives and/or stock do not appear on the income statement. They will appear in cash flow statements and statements about the change in equity. I commented once before on what I believe to be the immoral nature of a company trading in its own stock. I wish Morgenson would write a piece on that issue. It seems to me that the only legitimate reason a company has to buy its own stock is because it has surplus cash and no good investments to make, and conversely, the only reason to sell stock is to raise capital for business purposes. This is the thinking that underlies the exemption for income taxes on trading in a company's own stock. But it seems to me that many companies are trading in their own stock for investment purposes or to hide expenses rather than business purposes. Selling derivatives is really no different. TTFN, CTC