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

To: edamo who wrote (114235)	4/6/1999 11:54:00 AM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Re: Dell puts But what happens to Dell if its stock doesn't continue to go up and up? The liabilities could be huge—say $3.1 billion in the other direction. A poorly though out, and misleading question. If the stock were put to Dell the negative (remember, this doesn't hit the income statement) would be the striking price plus the premium received less the market price of the stock (ignoring interest earned on the premium). But this ignores a more fundamental issue. When a company purchases its stock (as opposed to an individual) it goes into treasury and is not part of the number of shares counted as issued. And stock buybacks do two things: first they are really tax-advantaged, disguised dividends, and second, by reducing supply they tend to increase the share price, at least over the short run. TTFN, CTC

To: edamo who wrote (114235)	4/10/1999 6:00:00 PM
From: Bill Martin	Read Replies (3) \| Respond to of 176387

Re: ... Dell has made more than $3.1 billion playing the market, while the company's net income over the same period was just $2.5 billion. ... forbes.com If I take Forbes at face value, it sounds like DELL *loses* money selling computers and makes money only by selling puts on their stock. Obviously this doesn't match well with the general perception of DELL. Is Forbes way off somehow, or is this as serious as it sounds? Surely DELL can't make $3.1B on selling puts without it showing up on their earnings statement. I personally don't see it anywhere on their 10K. Does anyone understand where Forbes gets this from? Thanks. Bill