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Technology Stocks : Semi Equipment Analysis
SOXX 312.18-0.2%Dec 9 4:00 PM EST

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To: The Ox who wrote (4277)7/24/2002 1:18:16 PM
From: BWAC  Read Replies (1) of 95546
 
Ok now, using some of the very same assumptions, theories, and principles of matching that expense to the revenue it produces come up with the assumed theoretical value of the option grant.

Devise a method to equally value the option that is equal across all industries and is equal across all ranges of stock volatility. Thus to maintain comparability between EPS among different companies.

Devise a further method to recognize a gain when previously expensed options expire worthless.

Rewrite the current GAAP rule that requires using fully diluted shares to calculate EPS. If its an expense, then it shouldn't be counted as an outstanding share until it is exercised. Result: Expense option reduces EPS. Outstanding shares (not fully diluted) increases EPS. All in the same period.

What is the net result? Very possibly Zero?
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