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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.28+0.1%3:59 PM EST

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To: RetiredNow who wrote (67207)3/5/2005 6:16:31 PM
From: Lizzie Tudor  Read Replies (3) of 77400
 
I'm curious if you guys think options expensing will cause any of these tech stocks to fall?

I don't think there will be any effect on stock prices. My feeling is that options expenses will turn out to be another letter in the EBITDA acronym or something like that. I own google and there are some options expenses reported and they are ignored by the investment community along with other things like "one time" non-cash payouts to yahoo (the fact that goog stock went up 50 pts after earnings a quarter ago - even though earnings when you included all these charges were only .18 absolutely confounded the shorts).

Of course options expensing will cause options to be curtailed, because more eyes are watching and thats what you really want. So that is good. But as for whatever earnings are reported to be WITH options- I don't think that number will be the "watched" number that analysts try to mark.
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