Gorilla and King Portfolio Candidates Message Board

STOCKTALK

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 : Gorilla and King Portfolio Candidates

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Mike Buckley who wrote (50726)	3/20/2002 12:15:25 AM
From: Thomas Tam	Read Replies (2) of 54805

Mike, Andrew points out a very disturbing issue with respect to stock options and their dilutive effect. If there are 150 million options (some vested and some not) outstanding for Siebel, would one expect management to continue to issue options for future years? And would this future dilution cause the earnings per share growth to remain sluggish despite new business accumulation? As long as options remain a taxable benefit (can someone help me understand why?) for companies, options will continue to be granted. So even with an economic rebound, P/Es will remain high sheerly based on the issuance of more options/stock. Now this is consistent with every tech company out there and possibly other non-tech companies, so should we simply ignore this funny accounting as it cancels out when you compare companies? Like to hear other people's thoughts on this. Thomas

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next