Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Chuzzlewit who wrote (110886)	3/22/1999 8:33:00 PM
From: TREND1	Read Replies (1) \| Respond to of 176387

Here is a play on numbers. (1) MUEI eps this qrt = 4 cents (reported today) (2) DELL eps this coming qrt = 15 cents (3) DELL = MUEI* (15/4) (4) DELL = 11.8125(15/4) = 44 1/2 (using MUEI's price) (5) That is if DELL and MUEI have equal PE's for the qrt Just a play on numbers (g) Larry Dudash

To: Chuzzlewit who wrote (110886)	3/22/1999 10:39:00 PM
From: Gabriel008	Read Replies (2) \| Respond to of 176387

Good evening Chuzzlewit, As I understand it DELL hedges currencies in order to minimize currency translation losses on component purchases and /or sales revenue. This is expensive insurance but mitigates against any nasty quarterly earnings surprises. On the options side I suspect that they sell puts and buy calls for essentially two reasons; 1- they, better than anyone else, know how a quarter will turn out and therefore have the odds stacked heavily on their side; and 2] they somehow have to offset the dilutive effects of the employee stock options that are execised every year. This reasoning leads me to believe that the amount of option positions they close in a particular quarter reflects their short term view of the market and its reaction to the earnings report. Suffice to say that DELL did not close out an abnormally high number of options positions in Q4 suggesting that they believed that Q1 f00 would be a positive quarter. Your thoughts would be appreciated. Regards, Gabriel