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Technology Stocks : Siebel Systems (SEBL) - strong buy? -- Ignore unavailable to you. Want to Upgrade?

To: hueyone who wrote (5908)	6/7/2002 2:59:15 AM
From: Hardly B. Solipsist	Read Replies (2) \| Respond to of 6974

I have to say that this sort of analysis is precisely why I think that the proposed accounting rules for stock options aren't very good. I don't want to give people the idea that I am generally satisfied with the way that company boards give huge option grants to their fellow directors, but treating this sort of dilution as if it is a simple expense is, in my opinion, just wrong. I believe that ORCL, for instance, has used stock buyback to eliminate options dilution, and depending on when they made the purchases, the may very well have made money with these grants over the last couple of years. Finally, if someone like Siebel isn't that important to his company, then why wasn't it started by someone else? And why is SEBL the leader in a very competitive market? I don't know what it takes to motivate someone like Tom, but I doubt that you can do it with a few million dollars. He probably gets that out his couch after a party...

To: hueyone who wrote (5908)	6/7/2002 9:25:48 AM
From: Mike Buckley	Read Replies (2) \| Respond to of 6974

Huey, Unfortunately, Siebel hasn't made a dime for outside shareholders for three years in a row. Net of an adjustment for the tax benefit relating to stock options, the company generated $419 million in free cash flow during that period. In Q1 of this year, an additional $156 million was generated. (Operating cash flow - capex - tax benefit) The insiders are walking off with every dime and then some. Why are we paying ... If you feel so strongly about that, what is your justification for investing in Siebel? I assume you are when you ask why "we're" paying. --Mike Buckley