Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Mick Mørmøny who wrote (87019)	12/27/1998 3:00:00 AM
From: Richard Tsang	Read Replies (4) \| Respond to of 176387

Wow! It sounds like Dell has $14 billions in stock options to its employees, which is actually a kind of deferred compensation. The exercizable portion is approximately 25% which will amount to 3.5 billion. Dell has made a net income of $944 million in FY98. At this rate, it seems that there is a huge liability for Dell. If they continue to buy back from market to avoid dilution, they will need to borrow money to finance that. This is not healthy, from a financial standpoint because the net income reported by Dell is not going to stockholder equity, but to meet this liability. The latest estimated EPS of 1.47 represents an increase of 39% over last year, substantially below the reported EPS growth of 64.1% last year. This is a significant slow down of growth rate and this stock is still selling at forward PE of 51 times and over 50 times its book value. Amazing! RT