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


To: Knighty Tin who wrote (102802)2/18/1999 7:42:00 PM
From: PAL  Read Replies (1) | Respond to of 176387
 
But I think Dell is now about to pay the piper for years of squandering cash flow.

I do value counter opinion as that will keep us alert and not complacent. However, I do expect that those opinions are substantianted with facts. Tell us how Dell has squandered cash flow which has jeopardized its operations. Are you saying that by not aggressively going after revenues at the expense of margins that Dell has misused its cash flow?

No matter what Dell would have done in Q4, it would be critized by analysts. If Dell was after revenues, margin erosions would invite downgrades as well as lower ASP. You cannot have it both ways.

Where do you suggest the cash flow should be used? Issue cash dividends?

Although I am long on Dell, I realize that MSD is not infallibe, but the decision of stock buy back is not one of the wrong steps. Tell me which company in the same industry that has a better management than Dell. CPQ? HWP? GTW? Packard Bell?

PAL.



To: Knighty Tin who wrote (102802)2/19/1999 1:55:00 AM
From: abraves  Read Replies (1) | Respond to of 176387
 
Just curious, but don't companies buy back shares to give to employees as benefits?. I mean if they are going to give what they buy back to employees as a benefit one way or another, they are not going to draw interest on the money anyway correct? If they are going to give the shares to employees as stock options etc., why not announce it and help the share price. I mean you make it sound like the only reason companies are doing this is to help the share price.

I thought companies were buying back their stock to attract good people mainly. MSFT is a good example their pay is not all that great but the stock options are unbelievable. most people that hold their options over 5 years end up as millionaires.