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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (5622)	2/18/2002 7:05:57 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 33421

Bill Parish's site is very interesting. Hmm... well, you have more experience than I do in analyzing financial filings, so you're probably pretty used to reading this kind of stuff... My first reaction was something on the order of "Jesus Christus!!, this is scaaaarrryyy!!".. I have relatives in MSFT. How do I convince them that they have significant value they can lose?? Bill Gates is seen like a business god who can do no wrong... This is similar to the cult of personality that Lay and Skilling created at Enron. Hawk

To: John Pitera who wrote (5622)	2/18/2002 9:01:51 AM
From: Hawkmoon	Respond to of 33421

The cost of granting an option with a performance benchmark (one that specifies, for example, that a company’s share price must outperform the average in that industry before its bosses collect) must be set against profits, unlike the cost of pure options. Funny,... I've read that article several times before, and only now did I notice the above... That's an interesting accounting issue. I also find it funny that options exercisement is tied to stock price solely, and not a rise in real revenue derived from corporate operations (not cash generated from employees exercising options). Hawk