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


To: Fangorn who wrote (85299)12/14/1998 7:47:00 PM
From: Chuzzlewit  Respond to of 176387
 
** ON TOPIC ** <VBG>

This is a dividend, gang! And the accounting, though not explicit, is similar. Suppose, for simplicity's sake, Dell buys 200,000 shares at $30 each. The cash account decreases by $6MM and the equity account decreases by $6MM. If this were a cash dividend, that's pretty much the way it would appear, except the number of shares outstanding wouldn't change.

The fact that Dell is trading around $65 does not appear anywhere in the accounting other than the fully-diluted no. reported each quarter. So, not only is this a dividend, but it is also an investment in an undervalued asset.

TTFN,
CTC