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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (45503)	4/9/2000 11:22:00 PM
From: MDGO	Read Replies (1) \| Respond to of 99985

50 to 100 Billion dollars of stock will be sold in April and May when the "lockups" ends. But this isn't where the screwing of the shareholder ends. Soon thereafter the execs. vote themselves new and more extravagant packages of stock options,which are given to them at a discount to market prices. To supply these options the Co. must buy back stock, issue more shares (dilutive) or raise more capital ie. go further into debt. The shareholder pays. In the case of one large Co. 24% of the capital is in the form of stock options which means that the ownership of the Co. could conceivably be transferred to the option holders in approx. 4+years with no investment on their part. This is one scenario but there are many others. Lockups, options and accounting practices have to be radically revised and updated.