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Technology Stocks : Long Term Investors' Outpost

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To: Seeker of Truth who wrote (341)	8/8/2002 9:56:24 AM
From: Uncle Frank	Read Replies (2) of 562

>> One day the company sells shares at a certain price to the optionholder. On that same day he/she can sell them into the market at three times the price. That is a loss to the company. By the same reasoning, if a company were to write a long term contract to supply a customer with a component at $10, and if the spot market was $15 at the time of a particular shipment, the company should apply a $5 offset to any profit they made on the transaction. >> Nowadays, we all know, engineers are happy to keep their jobs and get normal progression through the ranks salaries, forget options. Probably true; engineers are in a weak position at the moment. Perhaps companies convert all their engineers to contract worker status. Then shareholders wouldn't have the unnecessary drain of health insurance and vacation benefits against earnings. uf

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