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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 178.29-1.6%Dec 12 9:30 AM EST

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To: Wyätt Gwyön who wrote (130100)7/10/2003 9:46:43 AM
From: Art Bechhoefer  Read Replies (2) of 152472
 
Darfot, if MSFT restates its earnings to allow expensing of options and providing stock in lieu of options, it only shows what size can do. For a company as large as MSFT the effect on earnings is minimal. For companies just starting up, with, say market capitalization less than $1 billion, this policy really cuts hard into earnings (if any).

The point is, MSFT doesn't have balls, and smaller companies aren't spineless. Frankly, I think both policies (expensing options or providing stock) are extreme. A better method, at least for small companies, would be to expense options only to the extent to which the option can be exercised.

Art
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