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Technology Stocks : BAY Ntwks (under House)

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To: P2V who wrote (3687)1/21/1998 6:17:00 PM
From: WBendus  Read Replies (1) of 6980
 
Marden,

You said:
"When you can show me how buying (or borrowing) shares -- and then selling these shares --- helps to produce or sell any of Bay's leading edge products,and/or support the regional economies, I'll agree with you.

That is one of the things I hope to demonstrate with my analysis this weekend. I suspect that Bay's ESOP and Option granting programs produce dillution which exceed that of their peers. 8% of a company is an awful lot to give away. Raising capital by selling equity, especially at a discounted price, is the most expensive method, especially when one considers the effect on existing share holders.

Do not mis-undersatnd me, I am a strong supporter of ESOPs and I have studied their effect in producing more satisfied and connected employees. But, there is cause for significant concern when a company gives away its stock at rates which exceed those of the industry.

Wayde.
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