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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: jim kelley who wrote (41620)	12/30/1998 10:17:00 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Jim, I have never heard of them doing synthetic long stock, buying the call along with the short put. However, check the option prices before you make such a silly statement. Calls on trading sardines cost more than puts at the same strike price. So, of course, synthetic stock would cost Dell extra for their stock buys. I think the shareholders and directors would be interested in learning that they are throwing shareholder money away buying synthetic stock. If that is what they are doing, no wonder they just talk about the short puts. <G> Jim, you are trying to turn this sow's ear into a silk purse. But it still oinks. MB

To: jim kelley who wrote (41620)	12/31/1998 10:25:00 AM
From: Mama Bear	Read Replies (3) \| Respond to of 132070

" I sell a put at 70 and buy a call at 70 on the stock. It does not cost the treasury any money and it locks in the stock at the call strike price" "DELL uses Put premium money to buy the stock back anyway."" Umm, which is it? Do they use the put premium to buy stock or calls on stock? They can't spend the money twice. It also doesn't matter what they do with the cash after they get it, it's still income, and has to be accounted for on the balance sheet. Now, I will agree it won't increase EPS if they are turning around and throwing it away on calls. Instead of insisting you're correct, why not pull up the earnings statement and show us why you're right. Here's a link to DELL's Edgar page: edgar-online.com Barb