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Technology Stocks : Interliant, Inc. (INIT) -- Ignore unavailable to you. Want to Upgrade?

To: Richard B. Haenisch who wrote (564)	8/2/1999 1:17:00 AM
From: Chuzzlewit	Read Replies (1) \| Respond to of 1214

Rico, You are probably right with your assertion that it clouds the "true" operating costs of a company, but to apply traditional ways of accounting in todays tax age, would be, well "stupid". All I can say is caveat emptor. And by the way, traditional accounting does not recognize the cost of employee stock options on th income statement, and employee preference has little to do with the issue that stockholders are being asked to bear the cost of compensation. Furthermore, the reason behind these options is to hide the true costs from stockholders. One of the first things that Warren Buffett does when he acquires a company is to rid it of thes onerous devices. As to "stupid", you might consider recognizing the cost as calculated by the Black/Sholes model-- whose development resulted in several Nobel prizes in economics. But this is something that technology companies have fought against because they don't want their true costs disclosed. Besides, continuing to sell stock is a source of cash for them which is good considering the fact that so many of these companies are bleeding. If it were not for the sale of stock Amazon.com would be in negative cash flow. TTFN, CTC