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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 157.80+0.9%Jan 22 3:59 PM EST

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To: Stock Farmer who wrote (122039)7/24/2002 11:20:03 AM
From: Elroy  Read Replies (1) of 152472
 
A few comments

About future earnings. Most of us use analysts consensus forward earnings projections. Their models include projections of increases in diluted share counts. So the forward earnings you are using to make your investment decision DO include dilution assumptions.

The company only publishes in-the-money vested options. Not unvested options. Or options underwater.

You sure about this? Well if in the money vested options are the only ones that affect the diluted share count, then that is the area of accounting that should be changed. All issued options should have some affect on diluted share count, and the affect should be dependent on the options strike versus the share price at the time of counting and the stock's volatility. Not the operating expense line.

Like I said, if the company uses treasury shares to fulfill employees exercising options, the only "cost" is in the dilution. That's where it makes the most sense to measure it (at least to me).

Elroy
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