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

To: Chuzzlewit who wrote (83774)	12/5/1998 8:48:00 AM
From: Geoff Nunn	Read Replies (2) \| Respond to of 176387

Chuz: re When a company pays a dividend it means that it can find no better use for the cash. That is, within the spectrum of possible investments, returning cash to shareholders appears to be the best course. Agreed. So, if Dell were to begin paying a dividend the Street would conclude that Dell must be running out of opportunities for profitable earnings reinvestment. That of course would have major, major implications for Dell's stock price. If Dell were to announce for dividends tonight, the stock would be torpedoed on Monday - no doubt about it. With high earnings growth already discounted in the price, Dell cannot undergo any such change of perception without it leading to wholesale dumping of the stock and blood flowing in the streets. When Apratim said he would like to see Dell offer a DRIP, I wasn't quite sure what he was thinking but assumed he was merely expressing his enthusiasm for this particular type of investment. In my response to him I sought only to address DRIPs on their own terms - not in connection to Dell's stock particularly. Geoff