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.

Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: J.T. who wrote (12071)	5/6/2002 8:25:50 AM
From: High-Tech East	Respond to of 19219

... it looks like Greenspan wants to squeeze all the air out of the Nasdaq ... Ken Wilson ________________ May 6, 2002, Wall Street Journal Greenspan Comes Out Strongly Against Stock Options, Again By DEBORAH LAGOMARSINO, DOW JONES NEWSWIRES WASHINGTON -- Federal Reserve Chairman Alan Greenspan ratcheted up his campaign against stock options, saying companies' current accounting for them has inflated earnings and stock prices. "The seemingly narrow accounting matter of option expensing is, in fact, critically important for the accurate representation of corporate performance," Mr. Greenspan said Friday in remarks delivered via satellite to a financial conference in Atlanta. The Fed chairman believes companies should be required to treat stock options as an expense against earnings, just as they do for other forms of compensation, such as wages and salaries. "I fear that failure to expense stock-option grants has introduced a significant distortion in reported earnings -- and one that has grown with the increasing prevalence of this form of compensation," he said. Stock options have come under attack since the collapse of Enron Corp. and other companies and have been widely blamed for helping fuel the 1990s stock-market bubble and accounting scandals. Mr. Greenspan has became a leader of the charge, with Friday being the second time in recent weeks that he has devoted a speech to the subject. Still, Mr. Greenspan has no regulatory control over the issue, and options, heavily used by high-tech companies, have strong political backers, so change remains unlikely. At the White House, Mr. Greenspan's criticism of the accounting practices that companies use for stock options has fallen on deaf ears. The administration opposes any changes in the treatment of options on financial statements. In his latest salvo, Mr. Greenspan cautioned that the "greater risk" is to leave the current system of options accounting in place. "There is a legitimate question as to whether markets see through the current nonexpensing of options. If they do, moving to an explicit recognition of option expense in reported earnings will be a nonevent," he said. "If, however, markets do not fully see through the failure to expense real factor inputs, market values are distorted and real capital resources are being diverted from their most efficient employment. This would be an issue of national concern," he added.

To: J.T. who wrote (12071)	5/6/2002 2:12:10 PM
From: High-Tech East	Read Replies (1) \| Respond to of 19219

... J.T. ... in your assessment, what is the lowest we can go without being in serious trouble on the downside on the SPM2? ... ... now at 1067.50 ... with a closing low on 09/21/01 of 977.00 ... 8.5% from here ... ... my guess is 1057.50, the low of 10/30/91 ... not much support below that down to 943.00, low of 09/21/01 ... Ken Wilson

To: J.T. who wrote (12071)	5/6/2002 3:59:59 PM
From: High-Tech East	Read Replies (1) \| Respond to of 19219

... there is no support under the S&Ps and Nasdaq back to the lows of last September ... ... I hate to say it, and I could be wrong, but we could be looking at a negative one time event in the morning tomorrow ... I mean a crash ... Ken Wilson