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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: ms.smartest.person who wrote (52298)	5/4/2001 12:53:08 AM
From: ms.smartest.person	Read Replies (1) \| Respond to of 77399

Spinning Earnings The pro forma per share earnings look a lot better than GAAP in the latest quarter COMPANY PRO FORMA GAAP CHANGE JDS UNIPHASE $0.14 -$1.13 $1.27 CHECKFREE -0.04 -1.17 1.13 TERAYON -0.43 -1.01 0.58 AMAZON.COM -0.22 -0.66 0.44 PMC-SIERRA 0.02 -0.38 0.40 CORNING 0.29 0.14 0.15 QUALCOMM 0.29 0.18 0.11 CISCO SYSTEMS 0.18 0.12 0.06 EBAY 0.11 0.08 0.03 YAHOO! 0.01 -0.02 0.03 Data: Company announcements businessweek.com@@XSePk2QQbHnHrQUA/premium/content/01_20/b3732005.htm Used with permission of businessweek.com

To: ms.smartest.person who wrote (52298)	5/6/2001 12:59:06 PM
From: kaydee	Respond to of 77399

Merryfield, An excellent article, Thanks for posting it...

To: ms.smartest.person who wrote (52298)	5/6/2001 2:54:36 PM
From: Mick Mørmøny	Read Replies (1) \| Respond to of 77399

An Optimal Number of Options Legions of high-technology employees have lost fortunes as their companies' stocks have collapsed, making their stock options virtually worthless. Now there is evidence that issuing too many options was a cause of corporate failure and skidding stock prices. Technology companies that in 1999 had a high stock-option "overhang" — the number of options granted and remaining to be granted as a percentage of total shares outstanding — lost an average of 44.9 percent in market value in the 12 months ended in January, according to a survey by Watson Wyatt Worldwide, the consulting firm. That contrasted with a 4.2 percent increase in market value for companies whose option overhang was at or near "optimal." According to the firm, the optimal overhang is the point "where the incentive and dilution effects from stock options are balanced for maximum benefit to both employees and shareholders." For the technology industry, the optimal overhang is about 26 percent; stocks of companies with overhangs higher than 29 percent or lower than 21 percent fared poorly. But it was far better to be too low than too high. The low-overhang group lost 21.3 percent in value, less than half the loss of the high-overhang group. Robert D. Hershey Jr. nytimes.com