Qualcomm Incorporated (QCOM) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 157.38

-0.3%

12:18 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Wyätt Gwyön who wrote (122028)	7/24/2002 9:41:21 AM
From: Elroy	Read Replies (1) of 152472

I think this sentence is where you are mistaken. let's say in Q4 year 1 it earned 25 cents, and it granted options equal to 10% dilution. however, these options do not immediately dilute the EPS, You make it sound like options only add to dilution if they are exercised. I think that is mistaken, but if that is the case then it makes sense to expense option grants. But I think options add to the fully diluted share count from the date they are granted. The amount of dilution is dependent on the share price at the time the share count is calculated. Deep in the money options should count 100% toward dilution, at the money something like 50% and way out of the money close to zero dilution. If anyone knows whether my understanding is correct or not, I would appreciate it. Doesn't an option grant immediately affect fully diluted share count by some degree? Elroy

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next