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

To: David Harker who wrote (94860)	2/4/1999 5:04:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

David, there are some other issues that ought to be considered. DELL uses stock options as an off-the-income-statement method of paying for salaries. In addition, it uses stock buy-backs as a surrogate for dividends. These two financial devices make it appear that economic profit per share is increasing much more rapidly than it actually is. The fact that we have in a bull market for some time has allowed Dell to capitalize on the rising market by selling put options. But as eventually growth begins to palpably slow, and if the market goes through a significant downturn or stagnant period, these devices will not produce the results they have in the past. TTFN, CTC