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

To: Eggolas Moria who wrote (52988)	3/22/1999 6:28:00 PM
From: Michael Bakunin	Respond to of 132070

I see it as an implicit gain. They saved money they would have spent, or (more likely) diluted shareholders less than they otherwise would have (cf options grants). Try also #reply-8456734 and #reply-8456845. While I agree that the Forbes article is misleading, I think there's a problem. If Dell wanted to buy back stock last year, why wait?

To: Eggolas Moria who wrote (52988)	3/22/1999 6:29:00 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Gary, But it is also misleading to not mention that the interest earned on the put warrant game, approximately $180 million a year, is equal to 10.2% of last year's net income. And continues to this day and will continue ad infinitum after the expiration date as long as the stock does not decline. Figure that Dell's eps get a 1.6 multiplier into price earnings ratio, i.e, a co. growing at 50% last year regularly had a pe ratio over 80 times, and that 10% boost accounts for 17 pe ratio points, or 21% of the company's bloated market value. Good scam if you can get it. <g> Actually, it is a great deal and the only problem I have is that the entire operation is a footnote, the income generated from interest is NEVER mentioned in any reports, and Dell would have you think they have accomplished all this growth selling overpriced boxes to underbrained corporations. <g> MB