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.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: mepci who wrote (169612)	5/15/2002 7:58:11 AM
From: Mick Mørmøny	Read Replies (2) \| Respond to of 176387

mepci, I understand your concern about management's robbing stockholders legally via stock options. In fact, I was the first one on this board to bring it the attention of Prof. Paul Levy who discussed stock options with authority. Nobody seemed to be paying attention to the consequences during the bull run. I hope investors/traders will learn more from S&P's position in the financial world this time around. Below is S & P's explanation for excluding Unrealized gains/losses from hedging activities from Core Earnings. Mick (_$_) ~~~~~~~~~~ Unrealized gains/losses from hedging activities FASB issued Statement 133 to boost balance sheet transparency and reporting conservatism. The rule requires companies to record hedging-related derivative instruments as on-balance sheet items at their fair market value. Consequently, companies must report any unrealized gains and losses from this “mark-to-market” mandate. Because efforts to mark-to-market the fair value of derivative instruments speak to balance sheet conservatism and transparency, Standard & Poor’s believes unrealized gains and losses arising from mark-to-market positions should be excluded from the calculation of Core Earnings. The exception to this rule is companies for which derivatives activities are part of their normal business, rather than only a function of risk management. For these firms, any subsequent realized gains and losses should be included in calculating Core Earnings. Such cases are most likely limited to financial firms engaged in certain trading operations and may possibly include commodity firms that derive a significant portion of their earnings from trading in derivatives and other financial instruments. The link to S&P's Measures of Corporate Earnings: spglobal.com