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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?


To: AurumRabosa who wrote (68132)9/23/1999 7:55:00 PM
From: Freedom Fighter  Respond to of 132070
 
Ron,

None of these companies "has" to buy in their exercised options. They can dilute. The problem is that the constant annual dilution will slow the E.P.S. progress even if the sales and net income continue to make decent progress. Most tech investors don't seem to care that tons of their supposed earnings vanishes off the balance sheet just so that their portion of the business stays the same. (In MSFT's case it gets diluted a little slower.) THere will come a time when the growth of net income of even the best techies slows and then EPS will be going sideways. Maybe it will sink in then.

Wayne