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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: ralessipvh who wrote (24652)	5/16/2000 3:57:00 AM
From: Heeren Pathak	Respond to of 54805

Thoughts on options..... Options are a two-edged sword. The article correctly states that options can dilute earnings. Tech companies are betting that this dilution will be more than offset by future growth in earnings. The alternative would be to jack up salaries, which would impact CURRENT earnings. I know I could easily make 20-30% more by switching to my wife's company, but I would lose on the options side. I am betting that my options will work out better for the long-run. In the past, I have lost out on this bet. Another thing to remember is that options tend to be more aggressively given out pre-IPO than post-IPO. I remember an invest banker telling us that only 1 in 10 companies make it to an IPO.... Heeren