SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Don Lloyd who wrote (16418)8/9/2002 1:56:19 AM
From: Simba  Read Replies (1) of 42834
 
Don:

you write:

<<SB,
ok, how about earning be report INCLUDING the ALL outstanding dilution at any given time. unexercised in the money option swill be used to reduce earnings.
this will be the headline number by law instead of hiding it on a page 23 footnote.

sound reasonable?

I'd go a little further. All outstanding options, including far out of the money. This wouldn't be a hardship as they could just be cancelled.

Alternately, don't ever let buybacks reverse dilution. If you dilute your shares, it's permanent, at least available for inspection.

since it isn't an employee expense, we should do away with the expense deduction, right?

No, it still injures the shareholders so they deserve a deduction. It would be much easier to apply the deduction to the company as opposed to each shareholder individually.
>>

Since it is a non-cash expense whether it be attributed to the company or the existing shareholder, both do not deserve to get any tax deduction. Therefore the question of padding the company balance sheet with cash flow from tax deductions does not arise. The IRS got their taxes from the optionees exercising the options. Cash was created out of thin air just as cash was created during the NASDAQ bubble for many shareholders which could not be realized.

Exisiting shareholders are left holding the bag and deserve to be for allowing the company to dilute their equity. The IRS has no business restoring this equity loss created by the company management to benefit the insiders as opposed to the shareholders.

Simba
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News