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Technology Stocks : Echelon Corporation (ELON)
ELON 21.88+10.1%Oct 6 5:00 PM EST
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To: IngotWeTrust who wrote (2982)6/11/2002 12:01:59 AM
From: Ted The Technician  Read Replies (1) of 3076
 
At g_t's request, here is another one...

ELON's options expense was about $20M in Y2000 and Y2001.
This comes to about $5M per quarter or 18% of the Mar02
quarter's revenue - more than that quarter's sales and
marketing budget, more than that quarter's interest income,
and very close to that quarter's product and development
budget. The gross margins minus operating expenses
(not including the 18% options expense) was about 7%
in that quarter.

For comparison purposes, CSCO's options expenses are
"only" about 9% of its revenues,
about half of its last quarter's R&D budget, or a third
of that quarter's SG&A budget.

I do not understand how so many options can be awarded
with respect to revenues.

As an investor, I feel betrayed by the board of
directors of all these companies that give out so
many options. It is outrageous! I now begin to suspect
that the reason why the level of insider buying is so
low is because insiders are busy draining the
wealth of the investors as the insiders exercise and
sell their in-the-money options.

While on the topic of in-the-money options, the weighted-
average grant date fair value of options granted at ELON
during 2001 was $13.16, $27.20 in 2000 and $6.18 in 1999.
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