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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 159.42-1.2%Jan 16 9:30 AM EST

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To: slacker711 who wrote (123139)8/14/2002 10:56:48 AM
From: hueyone  Read Replies (1) of 152472
 
Qualcomm's share price is going get to that identical destination (plus or minus some unknown delta) regardless of it's decision on expensing options.

Not necessarily. As I believe Carranza noted, when stock options are expensed, they may be reduced like any other unaffordable expense. My guess is that the long term stock price of chronic stock option abuser companies---Cico and Sebl for example, are going nowhere until they get this expense under control. Expensing stock options on the income statement may encourage tech companies to get the expense under control sooner rather than later and be helpful to the long range stock price for some of these companies. There could be other companies that are so reliant on diluting shareholders to pay employees that they cannot compete at all when stock options are expensed on the income statements. We will have to look at the impact on a company by basis, but expensing stock options may have important impacts on the long term stock price of some companies in both favorable and unfavorable directions--- depending on how these companies are able to control stock option expense and depending on how well companies are able to adjust to life without the no-expense stock option loophole.

Best, Huey
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