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To: J R KARY who wrote (5223)	5/18/1999 3:53:00 PM
From: David Harker	Read Replies (1) \| Respond to of 8220

You need to read the post I was replying to, which said, in part: "What happens to the growth rate without the option income?" My reply was: "nothing". Meaning, Dell's growth rate and superb Return On Invested Capital (ROIC) comes from great operating results. Yes, cash was generated with option trading. Yes, it is obviously in their bank account. But it is NOT artificially "boosting" their profits/Net-Income, etc. Read the posts by Chuzzlewit on the Dell thread discussing this, from a few months ago. Re-read the quoted text in my last quote - that's all I'm saying. It's an accounting statement. Since they are not my words, reply to the poster via PM if it gets you all worked up. I happen to agree w/ him, and think people are getting too excited over nothing. If you think Dell cooks the books, don't buy the stock. >In DELL's case $3 bln goes a long way to run a business . If the >profits are not used that way please elucidate precisely where >the money goes. I would not presume to know what they do w/ it. My point is that the existence of this profit from trading has not boosted reported profits/net-income. Therefore, the "discovery" of this trading by posters on this thread: 1) is old news 2) is not the reason Dell has done well FYI, it appears much of the cheap stock dell acquires thru selling puts and buying calls is used to "fund" their employee stock option grants (ie, acquire cheap shares then give them to employees) - see the Dell thread, many thousands of posts ago (a few months ago).