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To: David Harker who wrote (5224)	5/18/1999 4:26:00 PM
From: J R KARY	Read Replies (1) \| Respond to of 8220

Dave its not nothing but a vital , but masked DELL , INTC & MSFT income stream ----- Dave: >> " 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. << ------ Dave my post describes it as hidden "income" and expenses . To earn it requires some operating expense (consulting fees , salaries , admin expense etc.) . The earned cash is initially masked from operating income and becomes a balance sheet (asset) item . But once deposited it then earns , and CONTINUES to earn operating income . It also reduces the cost of capital which enables a more profitable operating income . You further point out that some purchased options are used to lower the cost of employee benefits by reducing stock share costs . A hidden operating cost reduction . One thing I will give Jesse James & Co credit for is his saying "cash is cash until I steal it then its mine" . Also beauty is in the eye of the beholder - if the DELL shareholders don't care ... it really doesn't matter . Jim K.