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To: bill meehan who wrote (27287)	3/23/1999 10:10:00 PM
From: MythMan	Read Replies (1) \| Respond to of 86076

here ya go.. forbes.com

To: bill meehan who wrote (27287)	3/23/1999 10:24:00 PM
From: IceShark	Respond to of 86076

Bill, that anthill has been kicked quite a bit over the Dell and Mike Burke threads. The related larger issue is employee options, dilution of stockholders equity, partial effects on the P&L, etc. Anyway, the big abusers like Dell and MSFT have stopped the scam for now since the SEC sent them a little love note. -g- The way it works is sort of complicated so make sure you understand it before you put too much in print.

To: bill meehan who wrote (27287)	3/23/1999 10:45:00 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 86076

Bill, I am no Dell fan, by a long shot, but Forbes was a bit off on their story. Yes, Dell did make a lot of money selling Put Warrants, not puts, but it didn't go into income. It goes directly into capital the way regular warrants do. Now, they do earn interest on that cash they get paid for the warrants, and that amounts to about $180 million a year and that does go into the income statement. That is equal to more than 10% of last year's net income, so it is not insignificant. But it is not as big an income boost as Forbes would have us believe. BTW, the SEC sent out letters to the cos. that are the most offensive with creative accounting. I don't know what was discussed, but I do find it an odd coincidence that Microsoft, Dell and Intel all decided to curtail their sales of new put warrants after receiving that letter. <g> Best, MB