Mick, re Article, "These wealth transfers are now relegated to the footnotes of companies' financial statements. But last week, Standard & Poor's announced that it would begin deducting the expense of stock options from its calculations of companies' core earnings. Such a move by S.& P., one of the nation's largest purveyors of financial information, means that investors will be able to grasp option costs even if companies keep burying them in the footnotes."
Weath transfers to the corporation? What about the transfer of the "incentive to suceed"? Define "wealth transfer" in relationship to corporate granted options and you've defined the stock market as a whole...
Bear Stearns is well known for its consistent emphasis on shorting stocks. It is not surprising to see them jumping on a wagon for a self-serving number which may or may not be beneficial to shareholders.
S&P wants to be viewed as the King Kong of trust. But, they are as far from "Trust" as anyone else. They are caught up in their own "internet quagmire" and are looking for a way to be continually perceived as respectable.
Why don't we start wearing grey uniforms with a red star for a patch? With a grey uniform we can all, at least, be viewed as being equal in the eyes of the so-called "commoners". Is it not possible that if you artificially depress the option activity, at the executive level, through "purposeful publicity", you also depress a key ingredient to corporate success?
The Financial Press has their own agenda. They need to sell space. How do you know you're getting the complete corporate picture even if you change the option reporting methods? There are always ways to enrich others. At least with options it remains reportable.
I don't think anyone knows what the ultiimate end result will be when they start scraping for all these artificial changes to the corporate options picture. Such facial changes mainly serves those who wish to artifically depress stock prices.
Dell reports decent numbers. The day after, it is not surprising to see those who would benefit from a continued short position try and redefine success as it relates to corporate options. |
