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To: Ian@SI who wrote (4445)4/12/1999 10:23:00 AM
From: Sun Tzu  Read Replies (3) | Respond to of 15132
 
You are right, but you did not mention one important point; these "stock buy backs" that you mentioned are more geared to prevent dilution due to employee option plans than they are for the good of the common share holder. In other words, companies are lowering their operating costs by paying their staff in options. Then they do a "buy back" or more often a synthetic buy back to cover the dilution issue without properly showing this slight of hand in the financial statements. The only place that you can really see this is if you examine the cash flow statement carefully. I am not taking a swing at DELL as I don't know their particular case, but my statement is true for most high tech companies.

regards,
Sun Tzu



To: Ian@SI who wrote (4445)4/12/1999 4:09:00 PM
From: Justa Werkenstiff  Respond to of 15132
 
Ian: Re: "And I thought that I was cynical! ;-)"

At 5:30 am with no sun up, I am at my most cynical <g>.

Re: "And I do doubt that 5fer would try to manipulate Dell option prices. There's really nothing for him or CPQ to gain. And he does have much larger problems to devote his attention to."

Makes sense to me, but I had to post a flyer on that idea for some reason <g>. I guess I was trying too hard to make some sense out of Compaq's nonsense <g>.


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