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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 75.19-0.1%Jan 16 9:30 AM EST

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To: SouthFloridaGuy who wrote (63593)4/17/2003 11:40:25 AM
From: hueyone  Read Replies (1) of 77400
 
if it's good enough for VC's calculating equity valuatoin in A or B round financing, it's good enough for GAAP.

Excellent point!! The tech industry uses Black Scholes internally to estimate the value of option packages, but they don't want investors to use it. They want outside investors to value the options at zero. LOL!! Sebl recently used Black Scholes calculations to come up with an offer to repurchase its employees options with a strike price over $40. The offer price was set at the highest Black Schloles value for options in the pool. The hypocrisy of these companies claiming options have a zero value when reporting to the outside, investing public is really too much.

Regards, Huey
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