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Strategies & Market Trends : Z Best Place to Talk Stocks

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To: Nemer who wrote (39076)4/18/2002 10:26:39 AM
From: Racehorse  Read Replies (2) of 53068
 
BA

<excerpted with my bolding>

One day up, the next day down, that is pretty much par for the course over
the past few weeks. Yesterday was a repeat of that dynamic largely because
the very stocks that had been so strong over the past two weeks - namely
industrial giants - came under aggressive selling pressure. The two biggest
culprits were Boeing (BA) and United Technologies (UTX).

The Boeing earnings are actually very interesting because that firm is one of the few major issues
that includes stock option compensation for executives within earnings.

When that compensation is factored out of yesterday number,
the firm would have actually exceeded Wall Street estimates for the quarter.
While this may seem anecdotal consider the fact that stock option compensation
accounted for almost 12-cents per share in earnings.
Imagine what the bottom lines at other firms would look like if they choose
to account for
such compensation the Boeing way?


This gives us a glimpse of just how
expensive stocks really have become relative to legitimate earnings.


decisionpoint.com
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