Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: kvkkc1 who wrote (54194)	7/28/2001 4:24:35 AM
From: marginnayan	Respond to of 77400

kvkkc1, If possible, please read my post again. I mentioned those stock options with respect to startups like JNPR, FDRY, EXTR. As far as my understanding goes, none of these startups can afford to or have lazy engineers. At startups, you must be productive not every week, but every single day. It is easy to identify engineers that are unproductive and simply let them go. So your conclusion is incorrect. Indeed you are right about the fact exercised options are underwater, provided engineers did not sell them. On top of that there is tax liability. But then note that almost all key engineers usually tend to join in very early startup phase. The early you are, the larger is your options pie. Options allocate during this phase are usually less than a buck. So even at today's depressed stock prices after all those never-ending stock splits, they are still a 10-15 bagger to them, in case they did not exercise them. One more thing. All the startups that I mentioned in my previous post are at least 3 or 4 years old. So it is highly likely that engineers, who did not get too greedy, cashed out during boom time. I will continue to add any missing data point in my networking research. That's what message board is about, learning from what others have to say. Regards, Nayan