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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: pranadude who wrote (3014)7/20/2002 3:55:55 PM
From: Ted The Technician  Read Replies (1) of 3076
 
>>I believe that ELON will not be affected by a change in option laws more other high tech stocks.

Did some digging into EBAY's option expenses. Its CEO is OK with expensing options. ( "In response to an analyst's question, chief executive Meg Whitman said eBay would be willing to treat stock options as a business expense as long as a fair and standard method of valuing the options could be applied. " biz.yahoo.com )

No wonder. I estimate eBay's option grant expenses this last quarter would have been around 7% of its revenues. Its earnings this last quarter would have dropped from $0.19/shr to $0.12/shr. Compare eBay's number to ELON's expense of 23% of revenues. I think ELON would be impacted more than eBay when options are expensed.
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