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


To: DukeCrow who wrote (57943)8/9/2000 9:18:44 AM
From: Benkea  Read Replies (2) | Respond to of 99985
 
"Isn't that taken care of through the EPS dilution?"

No. EPS dilution ONLY takes in consideration those options which are both in the money and vested. The calculation assumes (incorrectly) that all those options were exercised and that the company used the proceeds from the strike to buy in all the shares it could with the money. This DOES NOT happen. So, this is yet another farce. MSFT which until yesterday had suspended its buyback program for several quarters is a good example.