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

To: hueyone who wrote (50831)	3/26/2002 2:49:37 PM
From: Stock Farmer	Read Replies (1) \| Respond to of 54805

If accounting reform for stock options is passed, I would guess Siebel has a chance of becoming one of the poster boy examples for abusive ESOPs in Silicon Valley which were used to falsely (but legally) prop up earnings and stock prices. Firstly, I wouldn't hold my breath waiting for reform. Proper disclosure would take a whole bunch of businesses and reveal them to be lousy investments that appear to be lousy investments. Instead of the present treatment, which has them appear to be great investments. Apparently, there's a difference :) And as for poster children... the real sad part is that there are lots of them. An entire industry will be affected (not positively) if people suddenly figure out how unprofitable these companies actually are. Not only that, but options are long lived. And there are ten years of option chickens flying home to roost. This could get ugly. John