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.
Technology Stocks : Son of SAN - Storage Networking Technologies
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: J Fieb who wrote (2547)1/17/2001 9:34:00 AM
From: J Fieb   of 4808
 
Way off topic and nothing to do with any SAN companies that I know of...

Mr. Twister, I could use some help. Way OT, but interesting. Jan 15. Biz Wk., (sorry I can't seem to get the article to post here,) has a piece about how corporations have used put options as part of corporate practice to print money and pay for stock buy back programs(that is until 2000).
The companies they used as examples are INTC,MSFT, DELL, McDonalds, and Adaptec, (it worked great until 2000)....the article talked about how Adaptec made 13 million for the corp. doing this, until 2000......"Some companies will be hit harder than others. Adaptec Inc. sold options on more than 2 million shares in 2000 with a strike prices of 23$ and 43$ Execs at Adaptec have watched their shares decline by 80% in the past year, to about 10$. If the company had to make good on all these put options today it would cost 72 million......the article says that corporations could always just print more shares to pay off the contracts....."If all of Adaptecs outstanding put options expired today, the compay would have to deliver more than 7 million shares to put holders......could dilute earning/share by about 7%.

Am always surprised at the way the real world is.
It will be hard for ADPT to really compete when it has distractions like this hole it dug for themselves.
Open Q) to those in the stock biz. How can one know if a company one is invested in is sitting on a pile of bad option contracts? Is this anything to really worry about, or is it just a good story but of no real significance? Thanks in advance for any help on this.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News