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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 77.760.0%Dec 4 3:59 PM EST

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To: Stock Farmer who wrote (64774)9/20/2003 1:16:58 AM
From: Lizzie Tudor  Read Replies (1) of 77400
 
What is your point, and who is "we". It seems like you are arguing on behalf of some irrelevant financial backer who wants a piece of Google? Trying to convince whoever that the overstatement of options expenses aren't the only thing that you look at when determining a valuation? Well, if I were a founder of Google, I would say so what. There are any number of private equity deals available for star companies that don't take options into account at all.

I'm certain you've sat in thousands of meetings with average firms that wanted money John. Maybe one of my companies was one of those meetings, who knows. In those cases overcharging companies for options might work, because the companies needed you more than you needed them. But I'm talking about the elite firms here, the Ciscos and Googles. They really don't even need investment when they IPO.

Even my last company had all the top VCs interested and we finally got a valuation of 100mm from the top firm. Pretty good, and we sure wouldn't get that valuation with options expensing- unless of course you ignore the whole exercise but then why bother with expensing because then even you are admitting options are free.
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