Arnie,
Personally, I feel the whole options game is deplorable. Whether you're talking about repricing or normal issuance.
There's no way that MSFT shareholders would have paid Gates $100B salary during the past 15 years, etc.
Yet if one wants to participate in the most rapidly growing sector, one doesn't have any choice. Yet.
IF enough of us vote against these options plans which give away an unreasonable percentage of shareholder returns while doing nothing positive for shareholder returns, the problem could be fixed. I won't hold my breath waiting.
But CDN isn't the first or worst example of Options abuse.
RE recognition of revenues: Unfortunately this is another area where GAAP leaves a lot of room for discretion. At least, CDN isn't as bad as RMBS, which reclassifies license payments on a license by license basis each time it needs to go to the "cookie jar" to make its earnings look good. Completely artificial, completely misleading, and completely frowned upon by the SEC. So again, CDN looks comparatively clean when compared with some of the other tech companies; and certainly is facing no different issue than any other software company.
Many times, I think investors would be much better off if earnings were reported annually only getting rid of the pressure to "meet" the quarterly consensus estimate.
JMHO,
Ian. |
