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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?


To: M. Frank Greiffenstein who wrote (1226)2/25/2001 12:45:03 PM
From: AhdaRespond to of 24758
 
Ahs words The corporations will have to increase prices regardless of pricing power or any other factor, because the slack is gone. Prices have priced their workers into poverty.

From me

The options game now translates to a poor bonus.
How do many clear up excess debt created during the year.
Options.

Whoops

How can NASDQ start backup?
How can the DOW?
What is the trickle down affect?
Are we in effect hoping for a trickle up?



To: M. Frank Greiffenstein who wrote (1226)2/25/2001 3:59:44 PM
From: wolfdog2Read Replies (2) | Respond to of 24758
 
<<The Naz has a lot more to fall once people start to distinguish between quality earnings and superifical earnings.Most employee options are underwater now, and soon these people will start to demand real salaries. THEN we'll get reall degradation in earnings.>>

Doc, I don't think so. The companies will simply issue new options with lower strike prices at best. Employees of these companies have little leverage at this time. Where can they go? Everyone in tech land is being similarly effected.



To: M. Frank Greiffenstein who wrote (1226)2/27/2001 3:47:45 PM
From: ElsewhereRespond to of 24758
 
An article in the business section discusses the huge employee option overhand and how this artificially inflates earnings in tech stocks.

Yes, the latest Barron's edition also has an article about it:

Barron's Online February 26, 2001
Other Voices: Fantasy Accounting
New financial reporting standards distort reality
By DAVID ROCKER

...

The final positions on both options and goodwill accounting are vastly different than the FASB's initial proposals. The FASB has simply caved in to extensive and persistent lobbying by corporations and investment bankers that would benefit from such weakened standards.

The U.S. has held up its accounting as a model for the rest of the world, claiming that accuracy and rigorous regulation have made our markets the safest, broadest and most efficient in the world. If the FASB has come to stand for Fantasy Accounting Serving Business, our accounting will be unworthy of emulation.

interactive.wsj.com