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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: James Clarke who wrote (8947)	11/14/1999 10:30:00 AM
From: TwoBear	Respond to of 78622

If I had bought tech 5 years ago I would be selling, probably two years ago. As a disclaimer, I'm just throwing scenarios out there to gather opinions. Like I've said before I'm 50% cash. Scott

To: James Clarke who wrote (8947)	11/14/1999 11:33:00 AM
From: Madharry	Read Replies (2) \| Respond to of 78622

It may well be that we have fallen out of a tenth story window and are passing the second floor now, but the charts on many of my mostly tech holdings look really good so I believe the present rally will continue for awhile. OT: I read something which if true I was totally unaware of: Someone stated that although the difference between the exercise price of an option and the market price at the time of purchase is not charged to income for accounting purposes, for tax purposes the company can record that difference as an expense and deduct it from its taxes, thus the company increases its cash flow from having options exercised by significantly more than the option price. For example Smith has options for 5000 shares at $1. Market price is $10. Company can deduct as an expense 5000X(10-1) or $45,0000 when Smith exrcises his option and buys the stock.Can someone confirm this?