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

To: AlienTech who wrote (569)	8/2/1999 9:42:00 AM
From: Sam Matz	Read Replies (2) \| Respond to of 1214

Alright analysts, where are you? Come out come out wherever you are!

To: AlienTech who wrote (569)	8/2/1999 12:16:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 1214

Alien, my point was simply that the company has created a large overhang with an employee stock option program, and that the cost to shareholders is not explicitly stated. I would think the stock option pricing is a very good clue on what the company thinks is a pretty good downside. Not really. Many of these companies have a bad habit of repricing options if the price of the stock heads south. Some recent examples: NETA, PSFT and SEG. What you have here (along with virtually every other tech company) is a plan for continuous selling of stock at bargain basement prices to top management regardless of the performance of the company. Look at options granted to Jeff Bezos of AMZN or Michael Dell of DELL as examples. And if you want to look at something really outrageous look at the options activity in BA (a company that is struggling). My point -- an astute investor should be aware of this program and factor it into his calculations concerning the long-run performance of both the company and the stock. It comes as a shock to many investors that there is a real cost associated with these instruments and that cost is not included in the financial statements. I believe that a much more honest approach would be for the company to obtain sufficient financing at the outset (supplemented by borrowing if necessary), and allow employees to purchase stock at 85% of market. There is nothing wrong with paying bonuses for performance -- but the bonuses should be tied to tangible accomplishments. TTFN, CTC