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Technology Stocks : Siebel Systems (SEBL) - strong buy?
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To: David Howe who wrote (5907)6/7/2002 1:10:42 AM
From: hueyone  Read Replies (2) of 6974
 
That's in the interest of the shareholders if anything is.

Is it in the interest of shareholders to have Tom Siebel and other inside employees walking off with all the profits and then some?---Because that is exactly what has been happening at Siebel.

Perhaps you recently received your Siebel 10k in the mail? Please take a look at page 50. There you will discover that when stock option based compensation is properly expensed (Pro forma giving effect to SFAS No. 123), that Siebel's after tax income of 57 Mill, 123 Mill and 255 Mill for years 99, 00 and 01 respectively, is knocked down to a negative 21 Mill, negative 122 Mill and a negative 467 Mill respectively for those same years.

Unfortunately, Siebel hasn't made a dime for outside shareholders for three years in a row. The insiders are walking off with every dime and then some. Why are we paying a man (Tom Siebel) 175 million dollars to lose 476 million dollars for the company? Would you buy an entire business that just takes your money year after year and returns you nothing, because that is exactly what we are doing (so far) when we shareholders buy a piece of Siebel.

The reason this information is hidden in the footnotes of the 10K is because our Silicon Valley execs descended on Congress back in 1993/4 to kill the FASB rule that would have required these companies to openly record employee based stock option expense as a corporate expense on income reports to shareholders. So now we have stealth compensation hidden away from shareholders. You have to look for it in the 10ks---long after this “legalized theft” has been committed.

The same bunch of execs, now led by Larry Ellison, Siebel’s Woodside neighbor and a beneficiary of stock option based compensation to the tune of 706 million last year, are descending on Congress again with their campaign contributions to kill the Levin/McCain bill---which is an attempt to fix this problem of hidden compensation expense.

Best, Huey
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