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

To: Skeeter Bug who wrote (52956)3/22/1999 3:47:00 PM
From: Knighty Tin  Read Replies (1) | Respond to of 132070
 
Skeets, Both. the major part is just addition to capital, but the interest earned on the cash flows right to the income statement. After all, when somebody pays a co. cash, they don't keep it under the mattress like their PIII inventory. <g> And it is no small sum given that Dell is taking down debt and buying back stock, so doesn't have much in the way of free cash flow. The $180 million or so in interest each year helps a lot to bolster than creaky income statement.



To: Skeeter Bug who wrote (52956)3/22/1999 3:52:00 PM
From: Knighty Tin  Read Replies (1) | Respond to of 132070
 
Skeets, to put it in perspective, if Dell is earning $180 mm in interest per year on the cash generated on those put warrants, and they should be earning even more, that is the equivalent of more than all the quarter to quarter growth in net income from 4Q 1998 to 4Q 1999. Nice pocket change that has nothing to do with executing the direct system and everything to do with flogging the stock to suckers. MB


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