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Technology Stocks : THQ,Inc. (THQI)

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To: Madharry who wrote (11976)11/10/1999 12:59:00 PM
From: jttmab  Read Replies (1) of 14266
 
Armin,

As a general discussion on options I would pretty well agree with what you said. There are companies, poorly managed ones at that, that will frequently reprice options. I think that is a travesty to shareholders.

On the other hand, there may be certain cases where a re-pricing of options is reasonable. It seems that at the time of the original pricing of the options there were some expectations of performance, e.g., revenue growth, margin, EPS growth...., and a companion expectation that the share price would reflect favorably with that performance if met. If the officers of the company exceed their relative targets by a significant margin yet the share price goes down, I think that it could be appropriate to re-price. I expect that it would be a rare event.

I was able to add to my position today at 42 1/6.

Jim
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