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Technology Stocks : Long Term Investors' Outpost

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To: Uncle Frank who started this subject8/20/2002 3:55:45 AM
From: Seeker of Truth  Read Replies (2) of 562
 
Dear Everybody,
I just woke up to the fact that there is a revolution going on. All of a sudden the average investor is saying enough is enough and there is tremendous grass roots support for cleaning up companies earnings statements. Where government doesn't react enough, Moody's and Standard and Poor are doing so. But government and even the powerful rating agencies pale before the strength of the ordinary investors who are more and more demanding that options be expensed, that the true cash flow should be exposed etc. etc. Pro forma earnings are out, down the drain. Truth is in. If an industry needs to hand over billions in stock options to its employees in order to remain competitive in attracting top talent then the industry isn't really so profitable. The bubble would have been much more sedate had this been realized. Now that the tidal wave of reform is racing in, the market is rallying. The truth is, people want to save for their old age and chasing people to pay the rent on a small real estate investment isn't the most fun. Investing in companies that one can trust and devoting one's life to other things is the most fun. The more honest a company is, the more it will gain in the new marketplace.
Companies that refuse to expense options will suffer. In the end they will be forced to give in.
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