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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?


To: EnricoPalazzo who wrote (50501)2/25/2002 9:28:13 AM
From: hueyone  Respond to of 54805
 
If Congress changes the law to require companies to account for options expense in their reporting to shareholders, perhaps those companies who can afford to grant options and still look good under the new law will continue to do so. Those companies that were misleading investors in to believing they were much more profitable than they were through the guise of paying compensation in stock options and not having to expense it, may have to cut back.

I suspect strong companies like SOFTIE will be just fine if reform for stock option accounting goes through. By the way, I have seen MSFT applauded in the past for making it much easier than most companies to ascertain the impact from stock options on income through examination of their 10-ks.

According to Fortune magazine, You can find a lot of other things about options in company reports that may have no statistical significance but sure are interesting. For one thing, does a company make it easy to find information about its options practices? Well, Microsoft is probably the champion here, including in its 10-K a Black-Scholes-adjusted version of its entire income statement.

Best, Huey