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

To: hueyone who wrote (5946)	6/8/2002 1:51:59 PM
From: Kevin Rose	Read Replies (2) \| Respond to of 6974

I believe you're missing one key point. Proper use of stock options (again, I'm not talking the huge post-IPO grants given to Tom and the like, but the rank and file) is a huge motivational, and thus productivity, tool. Without stock options, where would a lot of these companies be, and what would their valuations be? People always ask "why are Silicon Valley companies more successful, accomplished, profitable, innovative, etc, etc"? The answer is real, meaningful employee ownership. Stock options are tools that can vastly improve the valuation of their companies. Destroy or disable stock options, and you'll kill the golden goose.

To: hueyone who wrote (5946)	6/8/2002 1:53:23 PM
From: Mike Buckley	Read Replies (1) \| Respond to of 6974

Huey, Many independent observers whose pockets are not connected to the stealth compensation pipeline in some manner have readily spotted the flaw. To name a few: The Financial Accounting Standards Board ... Standard & Poors I don't believe FASB is an independent organization. If it was, it's highly unlikely that it would condone accounting companies selling consulting services to the very compannies for which they are producing supposedly indpendent audits. And I don't think that FASB or S&P can be justifiably complimented with "readily" spotting a flaw. It wasn't until there was a huge political and public relations fiasco brought on by the Enron debacle that it became a significant issue for either of them. S&P changed their way of analyzing corporate financials only a month or so ago. Even as we speak, FASB still hasn't made any change I'm aware of about the treatment of stock options. I'm glad that these organizations might be finally coming around, but let's not give them any credit for stepping up to the plate in the interest of shareholders in a timely basis when they should have done so long ago. --Mike Buckley

To: hueyone who wrote (5946)	6/8/2002 2:17:49 PM
From: Gary L. Kepler	Read Replies (1) \| Respond to of 6974

Thanks Huey. Maybe the fable will help clarify the issues for me. My eyes glaze over with all the accounting discussions. I have printed it out for study. I was fine up until the "dollop by dollop" system. I suspect the issue will be whether options have value when issued even if they are issued at 100% of current price. Perhaps my difficulty is that I, as an optimist, do not believe that the whole market is a ponzi scheme. I am aware that there are risks and abuses that need to be addressed. I hope the "cure" does not start a death spiral that feeds on itself. Something caused government taxes to increase reducing the need for deficit financing resulting in a lowering of interest rates for the benefit of all consumers. Let's hope this cure does not reverse this benefit. In any event, I shall study the fable further.