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To: DaveMG who wrote (1160)	4/6/1999 10:17:00 PM
From: William	Read Replies (1) \| Respond to of 54805

<<What exactly does that mean? If it isn't reported as income where does it show up?>> I may be wrong on this, but I read it as saying that without this profit from playing the options market that they would have shown a loss. Having only recently purchased the stock, I have not received any financial statements from them, so I can't be sure. One of the reasons I asked Uncle Frank his take on it. Anyone out there have the correct answers? Anyone read the financials? William

To: DaveMG who wrote (1160)	4/7/1999 1:52:00 AM
From: Chuzzlewit	Respond to of 54805

DaveMG, this is a commonly misunderstood accounting issue. Companies do not report the results of trading in their own stocks or derivatives based on those stocks on the income statement. Instead, the results are found in the equity section of the balance sheet. Dell's "earnings" in options are in addition to its earnings on the income statement. Furthermore, this approach is not nearly as dangerous as it appears at first blink, because it is an inexpensive way to fund share repurchases which are really disguised, tax-advantaged dividends. Why not get paid for doing something you were committed to doing anyway? TTFN, CTC