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

To: larry who wrote (110702)	3/22/1999 1:43:00 PM
From: Alohal	Respond to of 176388

I too just called Schwab and they told me too that Dell did not print 37 1/4, so I had him look at the confirmation in my account and he did not know what to make of it, said he get back to me, so much for my confidence level in Schwab. Never had this happen before and I'll not be pleased if my confirmation is a "mistake". Good thing I'm not a paranoid person. Good luck. Alohal

To: larry who wrote (110702)	3/22/1999 2:11:00 PM
From: Alohal	Read Replies (3) \| Respond to of 176388

Schwab just called back. Told me 37 1/4 was a "mistake" no other explanation, just a mistake! I asked if they were going to make good on their mistake, fortunately I printed out the 37 1/4 confirmation, and he referred me to the "Director's Division" to see what could be done. He thought I would probably now now have the choice of keeping the shares @ 37 1/2 or not keeping them, but not likely they would give them to me @ the "mistake" price! Has anyone else had this experience with Schwab or any other of the on-line brokers? Thanks for questioning this larry, I probably wouldn't have noticed it until I received by hard copy confirmation. Mahalo. Alohal

To: larry who wrote (110702)	3/22/1999 2:52:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176388

I was asked to respond to the following portion of a PM: "Aloha1, I am somewhat troubled by the Forbes article which is reported to have said that over the past three years, DELL has earned $3.1 billion from financial engineering (selling puts and trading calls) on its own stock and only $2.5 billion in other earnings. If this story is true, it will take some time to work through the market, but it is an axiom that you don't pay operating earnings multiples for financial engineering growth. The latter is simply not high-quality recurring earnings." The poster has made an error that many people make. Trading in either your own stock or derivatives based on your own stock do not count as earnings. The accounting is anything but clear, but basically it goes directly into the equity accounts. So when a company reports earnings these sources of cash are never included. Therefore, the comment is off base because it has assumed that profits derived from options trading were part of earnings. They are not. The converse is also true. When companies issue stock options to employees the implied cost is never explicitly listed as an expense. However, there is a federal income tax credit when those options are exercised, and that does appear on the income statement. Hope this clears some things up. TTFN, CTC