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

To: JakeStraw who wrote (58773)	4/2/2002 9:50:00 AM
From: RetiredNow	Respond to of 77400

Hi Jake, that article shows a fundamental lack of knowledge about stock options. When options are granted they are immediately dilutive to earnings in that Fully Diluted EPS is calculated with a share number that is increased to account for those option grants. So you don't have to wait for employees to exercise the options for EPS to take the hit. However, I do agree that the huge number of o/s shares plus the dilutive effect of o/s options places a very large burden on the company. They need to do everything in their power to put a plan in place to shrink that number over the next decade.