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Technology Stocks : Network Appliance
NTAP 117.78+1.9%Oct 31 9:30 AM EST

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To: Beltropolis Boy who wrote (1802)12/9/1999 4:29:00 PM
From: pirate_200  Read Replies (1) of 10934
 
> is there a book-cooker on this board?

I'm not a book-cooker but I think looking at options can
be an interesting intellectual exercise but not necessarily
meaningful unless they also attach revenue output per
employee to the equation, company growth rates and a
comparison to peers in the industry.

From a pure bean-counter perspective, stocks that have
great price appreciations will on paper give up a lot
of money in the difference of stock exercise price to
fair market value at time of exercise of options. However,
I think the accounting stuff is sometimes completely
detached from reality these days, for instance, what
does "book value" mean to a company like Network
Appliance? Is the inherent value of this company the
sum of the pencils, pens, desks and computers that
sit on them? Why don't intangibles like patents
and unique products fit into the equation?

The answer is probably that no one can trully put
a value to the intangibles just like no one can
trully put a value on those stocks options when
they are given to someone who potentially produces
a product or service for Network Appliance that
is worth potentially billions of dollars in the
future. How can one put a value on *that*, that
can be reflected on an income statement or balance
sheet today?
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