SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.38-0.7%12:40 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Don Lloyd who wrote (64556)9/14/2003 11:09:01 PM
From: Stock Farmer  Read Replies (2) of 77400
 
Don, your argument embeds a fallacy.

Scenario 1: The company that is growing its cash hoard at 10 M$ but giving away 20 M$ in equity.

Scenario 2: The company that is diminishing its assets at a rate of 10 M$ per year.

Scenario 3: The company that is growing its cash hoard at a rate of 10 M$ per year without dilution.

Two of these scenarios are equivalent in terms of the rate at which the company is increasing the wealth of its current shareholders.

How about you pick which two and explain. After which we can return to the debate about whether to record the value of non-cash compensation as an expense or not.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext